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  1. 1. REPORT OF THE CHIEF EXECUTIVE MEETING OF CABINET 3 MAY 2005 THE USE OF PROJECT MANAGEMENT WAYS OF WORKING ACROSS THE COUNCIL 1. PURPOSE OF REPORT 1.1 This report provides Cabinet with information as to how the Directorates of the Council intend to use project management ways of working to improve efficiency and effectiveness. 2. BACKGROUND 2.1 The use of project management techniques is critical in ensuring that major pieces of work within the Council’s programme are efficiently and effectively delivered. Project management is key to mitigating the risks inherent in any substantial investment or piece of work. 2.2 Work began on developing a local Bridgend toolkit for project management as part of the review of Procurement in 2003. All Directorates participated in this work and the resulting toolkit is a start point for the adoption of project management as a key managerial discipline within the Council. The toolkit will be tested during 2005 on Officer agreed significant projects and will develop as a working tool and become a part of the development programme for managers in due course. 3. LINKS TO CORPORATE OBJECTIVES 3.1 The development of project management across the Directorates of the Council will underpin the meeting of corporate objectives. 4. CONCLUSION The adoption of the Project Management Toolkit is the first step in the development of project management ways of working across the Council. Officers are considering a range of corporate projects on which to deploy the framework in 2005. Cabinet are asked to support this approach and the adoption of the Toolkit as a first step to developing a corporate approach to project management within the Council. 1
  2. 2. 5. RECOMMENDATIONS It is recommended that: (i) The use of the Project Management Toolkit attached as Appendix 1 to this report be noted by Cabinet. NAME: Mr IK Lewis Chief Executive Officer DATE: 25 April 2005 BACKGROUND DOCUMENTS: None CONTACT OFFICER: Mr. David Sutherland Head of IS and ICT IT Department Sunnyside House Sunnyside Bridgend CF31 4AR Tel: 01656 642110 E-mail: 2
  3. 3. APPENDIX 1 REPORT OF THE CHIEF EXECUTIVE ON THE USE OF PROJECT MANAGEMENT WAYS OF WORKING ACROSS THE COUNCIL PROJECT MANAGEMENT TOOLKIT APRIL 2005 1.0 Introduction 1.1 The purpose of this document is to provide a framework for the management of programmes and related projects within BCBC. The particular focus is upon project management. 1.2 The document is based upon a project management toolkit developed by a sub- group of the Procurement Review in 2003/4 which itself derives from the Prince2 methodology and the procurement principles of the Office of Government Commerce guidelines, Achieving Excellence in Construction. 1.3 BCBC undertakes a wide range of projects both in terms of value and scope. These projects are funded by a variety of sources and undertaken for a number of different departments and end users. This document recognises this and is not a rigid one size fits all set of procedures, but rather a definition of the key roles and responsibilities together with guidelines for effective project management. 2 What is a Programme? 2.1 It is important to recognise that the terms in programme management are loose and that this document concentrates upon project management. It is important however that projects are set in a proper context. In simple terms programme management may be seen as the co-ordinated management of a portfolio of projects to achieve a set of business objectives. If we adopt this definition then all projects should themselves be seen as part of the wider corporate improvement programme which is aiming to achieve for the Council a set of business objectives. The overall co-ordination of this programme is through the Corporate Management Board and the Regeneration Enterprise Board. 3 What is a Project? 3.1 For the purposes of this document a Project is an activity that requires organisation and funding to achieve a physical change. A project will always have a beginning, a physical work stage and an end. A maintenance programme would generally not be classed as a Project, although a series of repairs could be undertaken as a Project. 3
  4. 4. 1 The Key Roles 3.2 The management of a project within the Council requires that people adopt key roles. In smaller projects it is possible that the roles of client representative and project manager may merge. Two examples, which aim to show how the roles operate in actual situations, are provided as Appendices A and B. Appendix A focuses upon the management of the Junction 36 redevelopment whilst Appendix B is concerned with the Maesteg Regeneration Project. Further examples exist in non-technical areas for staff to consider and include the Personal Services Careworks Raise project. 3.3 Investment Decision Maker(s) – This role is unique in that it may be a group of people. For a major project within the Council it is likely that the decision to invest would be a Cabinet or Council decision based on a report of factual information with a recommendation. Smaller projects may be initiated by senior officers in accordance with the Scheme of Delegation. 3.4 Project Sponsor (PS) – It is essential that all Projects be ‘owned’ by a senior officer, generally at Assistant Director or Head of Service level. For projects with stakeholders across different Directorates the PS may decide to form a steering group of senior officers from other Directorates or users of the system. This steering group would then be kept advised of major issues on the project and be involved in decision-making, but the PS would retain ultimate responsibility for the delivery of the Project. 3.5 Client Representative (CR) – This role shall be filled by an officer managed through the PS and the steering group. They would represent the Client and have responsibility for the interface with the delivery team via the Project Manager. The CR would maintain a close interest in the project, being kept informed by the Project manager. 3.6 Project Manager (PM) – The PM is charged with managing the Project and the Project Team with the objective of delivering the project within the agreed time, cost and quality constraints. 2 Knowledge and Experience 3.7 The following table summarises the knowledge and experience required from each of the three key roles. The following definitions apply; 3.8 U – Understanding – able to understand the key issues of each subject heading and their implications, and able to compose sensible and relevant questions to gain the important information 3.9 C – Competence – has the technical ability to do what is required at each stage of the project or able to direct someone to carry out the detailed requirements. 4
  5. 5. Subject PS CR PM Business strategy C C U Investment appraisal C C U Procurement Strategy U C C Risk Management U U C Preparing a Project Brief U C C Whole life costing U C U Value management U U C CDM regulations U C C Sustainability Issues U C C Contract Strategies C C C Forms of Contract U U C Tender and Tender evaluation U C C Partnering U U C Design Process U C C Technical Process U U C Health and Safety U C C Planning & Programming U U C Performance Measurement U C C Cost management U C C Change management U C C Dispute Resolution U U C A fuller explanation of the roles and responsibilities is detailed below; 3.10Project Sponsor 5.4.1 The PS defines the scope of the project, is personally responsible for its delivery and should be accessible to stakeholders. The PS may be assisted by a steering group to ensure that other stakeholders buy in to the project as early as possible. This is normally known as the Project Board. The Board should not have powers that cut across the accountability and authority of the PS. Boards should be advisory, addressing strategic issues and major points of difficulty. If a major issue cannot be resolved with the PS, Board members would escalate to the Corporate Management Board or, if appropriate, the Regeneration Enterprise Board... 5.4.2 The PS's responsibilities are: • to be the design champion for the project, with a personal commitment to delivering a product that demonstrates design excellence - or to ensure that an appropriate individual takes on the responsibility of design champion 5
  6. 6. • to oversee the preparation of the business case and budget for the project, ensuring the proposals are realistic and meet the business objectives, and submitting them for the necessary approvals. • to establish an appropriate organisation structure and the necessary communication processes • to ensure that users and other stakeholders are involved in, and committed to, the project • to appoint a project manager and provide the terms of reference, adequate resources and any necessary support and training • to ensure that a brief is developed that clearly reflects the project objectives and is agreed by the stakeholders • to establish a progress and reporting procedure, ensuring that any changes in circumstances affecting the project are evaluated and appropriate action taken • to resolve issues with members of the client team and other stakeholders to approve any essential changes to the scope of the project, ensuring that any impact on quality, cost or time is assessed and reported to top management as appropriate • to ensure that a post implementation review is carried out and considered by all stakeholders in the project • to ensure that the finished asset still supports and satisfies the business objectives • to ensure that the business accepts and benefits from the finished asset. 5.4.3 The PS should draw up the terms of appointment for the Client Representative, setting out the following: • the business needs to be addressed by the project • the resources available to the project manager, internally and externally • the authority delegated to the project manager for decision- making 6
  7. 7. • the project manager’s responsibilities in relation to health and safety regulations 5.4.4 The PS should ensure that the terms of appointment are amended promptly in line with any decisions taken by the Cabinet or Council. 5.4.5 The business case is normally prepared by the Project Sponsor, with the assistance of independent client advisers as required. It is the PS's responsibility to ensure that the business case is reviewed to ensure that; • the recommended option meets the user needs while providing best value for money • all of the viable options have been properly evaluated • appropriate advice has been sought from suppliers and/or advisers • risks associated with each option are clearly identified, together with their impact on the project in terms of performance, cost and time. 5.4.6 The PS should be committed to encouraging good team working practices within the client organisation and with other organisations involved with the project, to ensure that the whole project team really is integrated - client and supply teams working together as an integrated project team. In particular, the PS should give clear, decisive backing where the council enters into partnering or team working arrangements with the integrated supply team (consultants, contractors and specialist suppliers) during the life of the project. Such visible backing would include attendance at the inaugural partnering workshop and commitment to the partnering agreement. 5.4.7 The PS should attend project reviews with senior managers from the other parties involved in that stage of the project. These reviews should be conducted at regular intervals, appropriate to the stage and nature of the project, to consider major issues, identify achievements and enable potential disputes to be resolved promptly. The PS is responsible for ensuring that post implementation review is undertaken to check that the expected business benefits have been achieved. 7
  8. 8. 5.5 The Client Representative (CR) 5.5.1 The Client Representative acts as a single focal point for day-to-day management of the council’s interest in a project, securing its development and delivery and leading its post implementation review. CR’s should understand the council’s activities but do not have to be technical experts; they are advised by the Project Manager (who must have technical expertise), independent advisers or specialist members of the supplier team as required. They should always report to the PS, have formal terms of appointment, empowerment to take decisions and clearly defined delegations with resources provided to ensure that they can direct the project effectively. The core requirements of each person's role should be determined before appointment; ideally, the person should stay in post until the project is completed. Note that some CRs may have responsibility for a number of projects at one time. 5.5.2 A CR should understand risk and how it is managed, together with the principles of brief-writing and project management techniques. Training should complement practical experience of the industry, including team working and collaborative working. 5.5.3 The CR must be able to articulate the client's needs and has personal responsibility to the PS for the whole of the project. The CR should expect to stay with the project until its completion as continuity is an essential feature of this role. 5.5.4 The tasks are to: • support the PS - prepare business case and investment appraisals and updating as required - manage the resources allocated by the PS - work within delegated authorities, including health and safety • manage the department's interests in the project by: - coordinating and directing user input - appraising options (with assistance from independent advisers, as appropriate, and the project manager) and submitting them to the PS for consideration - preparing the project brief for the project manager, making the role of design clear in setting the brief and achieving the goals of the project 8
  9. 9. - controlling changes (if required) following approval, ensuring that change control procedures are adhered to - ensuring appropriate risk management on the project - managing the project budget, including the risk allowance - providing a focal point for all client contact with the supply team, providing approvals and decisions as necessary carry out a post project review with the integrated project team. Ensure effective feedback from the project by assisting the PS in carrying out a post implementation review to inform the PS of: - how far the project met the department's interests and objectives - what lessons need to be learned for the future (things done well and areas that need to improve). 5.5.5 There is no single set of skills and responsibilities for CRs, because some will undertake only one project in their entire career whereas others will be involved in a succession of projects. However, there is a common core set of skills that typically apply to a client representative. It is unlikely that one individual will possess all these skills; independent advice may be obtained to provide support where there are gaps. 5.5.6 A CR should have an understanding or competency of: • The council's business strategy, objectives, culture and financial regime • Investment appraisal • The functional activity that the project is to support • The role of design in setting the brief and achieving the goals • The impact of different procurement routes • Risk analysis and risk management • Value management and value engineering • Health and safety issues relating to technical projects • Sustainability issues • The design and technical processes • The tendering process and forms of contract • Project management techniques • Project review, including gateway reviews • Team working and partnering • Performance measurement and benchmarking • Whole-life costing and cost management. • Partnering • Dispute resolution 9
  10. 10. 5.5.7 The CR should have interpersonal skills that include decisiveness and the ability to challenge, communicate, motivate and negotiate effectively, together with: • the ability to prepare an investment appraisal, with support from independent advisers if required • the ability to write a project brief. 5.5.8 The CR ensures that the users have the opportunity to provide relevant input to the design process. While the PS can deliver the senior stakeholders' views, it is unlikely that they will represent the everyday requirements of end-users, such as travellers using a bus station. The users may find it difficult to articulate their needs in output terms but their perception of what makes a successful product is an essential contribution to the design 5.6 The Project Manager 5.6.1 The Project Manager is the individual responsible for the day-to-day detailed management of the Project and the delivery team. He provides the interface between the PS and the delivery team and provides the leadership, motivation and management that ensure that the delivery team works effectively. Good Project management is comprised of both ‘hard’ and ‘soft’ skills. 5.6.2 Hard skills • Organisation • Problem solving • Implementing effective procedures • Concise reporting 5.6.3 Soft skills • Motivation • Leadership • Dispute resolution. 5.6.4 The hard skills can be provided for a Project Manager through training and the use of procedures and standard documentation. Standard formats can be devised and implemented across all Projects e.g. (risk register, cost reports, monthly reports etc.) Training may be available to address the soft issues but these are harder to define and the knowledge gain from past experience (and mistakes!) is invaluable. 10
  11. 11. 5.6.5 The PM must have a detailed understanding of the technical needs required to fulfil the project. 6 The Arrangements for Working Together 6.1 The Project Board will act as the high level responsible group and contain as a minimum the Project Sponsor, the Client Representative and Project Manager. The Project Sponsor will be responsible to either the Corporate Management Board or the Regeneration Enterprise Board for the delivery of the agreed outcomes. The Board should take responsibility for the Brief, the Risk Register and Resource Control as a minimum activity. 6.2 The risk register is a vital tool in the conception, procurement and delivery of any project. It is very much a living document that is developed and refined as the project progresses. It is initiated at a very early stage in the project by simply listing the risks that a project faces. This is often produced by a brainstorming session, with a number of people involved in drawing up a long list. The risks should be specific to the project and have a sensible chance of occurring, hence ‘building struck by meteorite’ should not be included but for example on a land reclamation scheme, experience has shown that ‘uncovering old bombs or munitions’ is a realistic possibility. There are always generic risks such as ‘adverse weather’ or ‘clash with unknown existing services’ and so consideration of a previous project risk register is a useful exercise. A consideration of the risks at a very early stage may influence that way a project develops or in the extreme case lead to a decision not to proceed at all. 6.3 When the risks are listed, the next step is to record who owns each risk (usually either Client or contractor) what could be done to mitigate each risk, the possible effect on the project if it occurs (in terms of time or money) and the likelihood of the risk occurring. This then leads to the Client setting aside a realistic risk allowance in the project budget. 6.4 At the time that a contractor is procured there should be a re-examination of the register as he may suggest additional risks to be considered and it is essential then that there is clear agreement on the ownership of each risk. 6.5 The importance of resource control cannot be overemphasised and requires a close working relationship with Finance staff to ensure that all costs, in particular the apportionment of internal costs are available to the Board and fully understood. 6.6 The Project Team will be overseen by the Project Manager and is likely to be multi disciplinary and multi organisation. 11
  12. 12. 6.7 The Board and the Team should be supported by a Project Office. 7 The Project Management Process 7.1 The process to be adopted within Bridgend County Borough Council requires key documents to be in place beginning with an agreed brief and a method for updating and maintaining the brief (i.e.; change management). There should be a risk register and a Project Initiation Document (PID) including a Project Plan references resources against which the project progress can be measured. An example of a small scale project template is attached as Appendix C. 7.2 The primary role of the PID is to set down the deliverables, the methodology and critical information relating to the project. The first draft should be prepared early in the project definition stage and an approved version must be signed off by the Project Sponsor and end user before any physical work begins. The exact composition of the document will vary with each project but should include; • A background to the Project • The Project brief including clearly defined deliverables • The personnel involved with roles and responsibilities • A description of the project documentation to be produced • Statement on methodology (meetings to be held etc) • An outline project programme • The budget. 7.3 The formal sign off of the PID is the final milestone before proceeding to physical work. The information contained within the PID is relevant to the ongoing process and is likely to be consulted by members of the team as work progresses The recommended staging of a model project is as laid out below: Stage Project Step Supporting Activity Start Need for Project Identified Identify PS First estimate of possible cost Explore possible sources of funding Strategic Identify options to meet user Value Management assessment needs. Undertake feasibility study Consider procurement options Prepare business case Risk Management 12
  13. 13. Initial report to Council Project Produce project Brief Development Prepare Risk register Determine procurement route Appoint design team Do EC regulations apply Produce initial cost plan Procurement Determine selection and Do EC regulations evaluation criteria apply? Revise cost plan Draft programme Cabinet report recommending proceed to tender and subsequent acceptance of best scoring tender Tender process Complete Project Initiation Document Appoint Contractor 8 Project Monitoring 8.1 The monitoring of the project is a critical component and is an ultimate function of the Project Board. It extends beyond the remit of resource control and covers the close monitoring of project timescales. The Project Board has the responsibility to act upon the variations identified in the progress and reporting procedure put in place by the Project Sponsor. 13
  14. 14. APPENDIX A 1 The Management of Junction 36: An Understanding of the Project Roles 1.1 To assist in understanding these roles, it is useful to set out how they are working on a live project. The junction 36 scheme is a £1.5m project to improve the motorway junction at Sarn. The Project Sponsor is the Head of Transportation who has steered the scheme through the difficult process of obtaining objective 1 funding. The Client Manager in the Directorate is the Client Representative with a trained Project Manager in place. All three are based in Morien house and this aids communication. The CR and PM discuss the scheme most days, usually briefly, but sometimes in great detail. They are comfortable with this informal arrangement and do not hold formal minuted meetings, although all-important decisions are recorded. Due to his previous experience the CR, has a wealth of experience in Highway works and regulations and the PM will often seek his advice on small points of detail. The works were procured using the innovative ECC form which the PM is championing in the Authority, the differences and benefits of this form are a frequent topic of discussion. Junction 36 is a very busy junction where a minor problem can quickly escalate and cause major traffic disruption. 1.2 The PM ensures that the CR is quickly made aware of any such problems so that he can provide a positive response when his phone starts ringing! The PS has a great number of potential schemes and funding issues passing across his desk, now that junction 36 is live on site, he requires only brief progress reports from the CR. Junction 36 is a vital gateway for BCBC with the busy M4 and the commercially important McArthurGlen and Sainsbury's site immediately adjacent. Some project decisions, such as the date for switching on the new traffic lights are politically sensitive and the CR will always consult the PS on these issues. Should the CR be away from his desk and an important issue came up, the PM would have no hesitation in speaking directly with the PS. 14
  15. 15. APPENDIX B 1 The Management of Maesteg Regeneration: An Understanding of the Project Roles 1.1 Project Management Pilot Proposal for Maesteg 1.1.1 The project management paper identified a number of key roles and associated responsibilities. • Project Sponsor- a project sponsor (PS) should be a senior officer, generally at an Assistant Director or Head of Service Level. For Projects with stakeholders across different departments the PS may decide to form a steering group of senior officers from other departments. The steering group would be kept advised of major issues on project delivery and be involved in the decision making process, but the PS would retain ultimate responsibility for the delivery of the project/s. • Client Representative- The Client Representative (CR) role is undertaken by an officer who is managed by the PS and the steering group. They represent the Client and have responsibility for the interface with the delivery team via the Project Manager. The CR would maintain a close interest in the project, being kept informed by the project manager. • Project Manager- The Project Manager (PM) is charged with managing the project and the project team with the objective of delivering the project within the agreed time, cost and quality constraints. (Refer to Toolkit for greater details on these roles) 1.1.2 It is proposed that above principles be applied to Maesteg as follows. 1.2 Project Sponsor /Steering Group 1.2.1 The Assistant Director Community Regeneration and Strategic Development has now taken on major responsibility in the Llynfi Valley and therefore will be the PS. The steering group will be the Officer Working Group which will have officer representation for each of the key projects being undertaken within Maesteg, including: • Phase one public realm works • Phase two public realm works • Maesteg Washery site phases II and III • Colonel North Building • Townscape Heritage Initiative scheme 1.2.2 The PS will chair these meetings and clear terms of reference for the Officer Working Group will be established. The PS will be responsible for liaising with the local members and the overarching Maesteg 15
  16. 16. Regeneration Steering Group (with representatives from the community, voluntary organisations, private sector and the Council). 1.3 Client Representative 1.3.1 The CR will be the Maesteg Regeneration Officer. The CR will act as a single focal point for the day-to-day management of the Council’s interests in a project, securing its development and delivery and leading its post implementation review. 1.3.2 The CR has personal responsibility to the PS for the whole of the project. The CR will attend the Officer Working Group and will establish the sub project officer working groups as and when required. 1.3.3 The CR will also ensure that appropriate consultation is undertaken with various user groups to enable them to have an input into the design process. 1.4 Project Managers 1.4.1 Paragraph 3.3 identifies the various projects that make up the Maesteg Regeneration scheme. Each of these projects will be allocated a PM who will be responsible for the day to day detailed management of the project and the delivery team and will advise the CR on technical issues. The PM will provide the interface between the PS / CR and the delivery team. 16
  17. 17. Diagram 1: Structures Regeneration Steering Group (Representatives from Community, Voluntary & Private Sectors and the Council – Chaired by Deputy Leader) Member Liaison Meeting (Local members/ Deputy Leader/ PS/CR) Officer Working Group (PS/CR and PM for each core project- chaired by PS) Sub Project Groups • Phase 1 • Phase 2 • Washery II &III • Colonel North (CR/PM and contractor representatives and other members of the delivery Team) 17
  18. 18. APPENDIX C Project Management Template for a PID Bridgend County Borough Council PROJECT INITIATION DOCUMENT Prepared by: Document Control Version Date Description Reviewers 0.1 Draft First draft for review 0.2 Draft Second draft for confirmation 1.0 Approved version Approved Approval Block: B.C.B. Council Project Sponsor: ___________________________ Project Manager: ___________________________ Document control note. Versions commencing with 0 are draft versions, e.g., 0.1. Approved versions commence at 1.0.
  19. 19. Deliverables The deliverables from this project will be:- Owner 1. Project Structure Definition 2. Statement of Project Objectives 3. Project Plan 4. Definition of scope of scheme 5. BCBC Internal publicity 6. Definition of individual staff roles 7. Staff trained to perform their defined roles Background Project Roles and Responsibilities Appendix 1. Project Product Descriptions Title: Project Structure Definition Purpose: To define the project working relationships Composition: Derivation: External Dependencies: Quality Criteria: Approvers: 19
  20. 20. Title: Statement of Project Objectives Purpose: To define the project objectives Composition: The plan will be a Word for Windows document. Derivation: External Dependencies: Quality Criteria: Does the document reflect project objectives? Are its contents known and agreed by the appropriate personnel? Is the document clear and easy to understand? Approvers: Title: Project Plan Purpose: To communicate a plan of the project tasks and time- scales to all parties. Composition: The plan will be a Word table summary and an MS project file Derivation: External Dependencies: Quality Criteria: Is the task time scale realistic? Is the plan known to all those involved? Are adequate resources available? Approvers: 20
  21. 21. Title: Definition of scope Purpose: Composition: Derivation: External Dependencies: Quality Criteria: Approvers: Title: BCBC Internal publicity Purpose: Composition: Derivation: External Dependencies: Quality Criteria: Approvers: Title: Definition of Individual Staff Roles Purpose: Composition: Derivation: External Dependencies: Quality Criteria: Approvers: Title: Staff Trained to Perform their Roles Purpose: Composition: Derivation: External Dependencies: Quality Criteria: Approvers: 21