This document summarizes the journey of portfolio management in the UK's Office for National Statistics (ONS) over the past several years. It describes how the portfolio management team has grown from a small, upward-facing team overseeing an ad hoc portfolio to a larger, centralized Project Delivery Profession overseeing strategic portfolio. Key developments included an Atkins review identifying needs, implementing recommendations to improve planning and governance, and consolidating functions in response to pressures like the national census. The presentation outlines goals and challenges in further maturing portfolio management practices to make more informed strategic decisions.

1. PORTFOLIO MANAGEMENT IN THE GOVERNMENT
SECTOR…
THE ONS JOURNEY
Nicky Bloomer
Head of portfolio management

2. What we do…
uLargest UK producer
March/April 2016
u World Leaderu Social and Economic

3. What we do…Recent March/April Releases
uLargest UK producer
 Spike in number of deaths in 2015 driven by increased mortality in over 75s
 Briefing – Improving Crime Statistics for England and Wales
 Introducing the new UK House Price Index
 National Accounts Changes: impact on real GDP 1997-2011
 Night club entry fees removed from CPI basket of goods
 Shaping the future of consumer inflation statistics in the UK
 Just over 800,000 people on zero-hours contract for main job
 Almost three in five adults drink some alcochol in a typical week
March/April 2016
u World Leaderu Social and Economic

4. uWhich Beckham baby had the biggest impact on baby names?
What we’re known for?

5. #1 Why we introduced PfM
uLink to Strategy u Silos u Dependencies
uOutside pressures

6. Jan 2013
I start
June 2014 – Mar 2015
Atkins Review
April 2015
New DG Team
and DTM
directorate
April 2016
Challenges
• Crossover with Finance functions
• Slow start re. Capability (Right
People)
• Under-resourced (Right Way)
• Upward facing – limited delivery
support (Right Projects)
• Ad hoc portfolio of projects incl
legacy and non strategic
• Portfolio Team: 14 people
Challenges
• Implementing Atkins Maturity
Assessment recommendations
• Understanding requirements
• Forward look - contractor
replacement
• Census ramp up
• Flexible resourcing
• Portfolio Team: 21 people
Challenges
• Provision of a project delivery
service via a virtual arrangement
– Division split across sites and
programmes
• Managing tension between
agile/non-agile approaches e.g.
around governance and PBC
• Pressure to manage numbers
down
• Portfolio and Programme
Teams now Project Delivery
Profession: 80 people
PfM Build and Consolidation
₋Business cases
₋Resource
₋Benefits
₋Capacity and capability
₋Reporting
₋Governance Guide
₋Strategic Alignment
Evolution
₋New portfolio design, supported
by revised Governance
Framework
₋3 programmes, transformational
in type
₋Aligning with ONS Target
operating model
PfM Foundations
• Right People, Right
Project, Right Way
• Exec brought on
board
• Craig brought in
• Value Experience
• 100 Day Sprint
• Portfolio Team: 7
people
ONS Portfolio Management Journey
Rollout Atkins
Recommendations
₋Delivery transition
₋Planning & PPM standards
₋Strategic Alignment
₋Dependency Management
₋Assurance Function
Nov 2015
Spending Review
Nov 2015
DG directive
Centralise
profession Portfolio planning and redesign
April 2014
IPU set up

7. #2 “100 Day” Sprint…
uExpertise u Commitment uAlignment u Visual
uGovernance uPortfolio Office uInformation

8. 8
Example: Blueprint for Portfolio Management

9. #3 Aiming for Success
uPortfolio Journey u Head of Portfolio Team u Portfolio Vision
uInformed decisions u Recognition uMore than a sprint?

10. We can see killer dependencies on the horizon
We know when business cases
are planned for approval
We can we see strategic
resource risks in time 10
Example: Delivery Journey
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …

11. Minimal Low Medium Significant Critical
11
1
2
Project D
3
4
Project J
5
6
Project E
Project N
Project K
Project F
£xM
£xM
£xM
£10M
£xM
£xM
We can see contribution to
statistical business strategy
Project B
Project M
Project P
Project G
Project I
Project H
Project A
7
8
9
10
12
13
14
15
1611
Project L
Project C
1
2
3
4
5
8
10
11
12
16
6
7
Project in pipeline
KEY
Mandatory/
Contractual/
Political Project
9
14
15
132012/13
Budget
Project in delivery
Project O
4
Full
investment
Part investment
Projects in
priority
order
Example: Project Contribution to Business Strategy

12. High(Easy)Low(Hard)
Low High
Attractiveness
Achievability
Distraction?
Drop Capability?
Commit
High Cost
Medium Cost
Low Cost
Project ‘A’
Project ‘B’
Programme ‘C’
Programme ‘D’
Project ‘E’
Project ‘F’
We know which ones are
likely to fail
We know which ones could
just be a distraction
We know which ones are
worth trying really hard to
make work
12
Example: PPA™ Portfolio Analysis

13. 0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
BenefitValue(£m)
Financial Year
Full Business Cases: Return on Invesment
Cost ONS Financial ONS Risk Reduction Stakeholder Value
We are becoming confident
with the quality of our business
cases
We are starting to actively
manage benefits
We monitor return on investment for the
portfolio
Project A
Project B
Project F
Project C
Project E
Project D
PROJECTS
benefits
13
Example: Understanding our ROI

14. 0
10
20
30
40
50
60
70
0 10 20 30 40 50 60 70
WholeLifeCost£m
% Contribution to Strategic Aims
Example: Whole Life Cost of Investment in relation to
% Contribution to Strategic Aims by Project

15. 15
Example: Strategic Contribution Chart
Project a Project a Project a Project a Project a Project a Project a Project a Project a

16. 16
Sample: Cost Per Point of Strategic Contribution
Project a Project b Project c Project d Project e Project f Project g Project h Project i Project j Project k

17. £xm
(x%)
£xm
(x%)
£xm
(x%)
Financial - Non Cash
Releasing
Financial - Cash
Releasing
Economic
Other
£xm
(x%)
BoE
£xm
(x%)
HMT
£xm
(x%)
BIS
£xm
(x%)
Eurostat
£xm
(x%) DWP
£xm
(x%)
HMRC
£xm
(x%)
DCLG
£xm
(x%)
Respondents
£xm
(x%)
(excluding Project X)
Example: Benefit Type by External Stakeholder

18. Example: Prioritisation Principles
Attractiveness - Considers level of strategic alignment and contribution; alignment to
UKSA priorities; Is it on the ONS Roadmap? Level of benefits expected and how future
proof and adaptable the output will be
Achievability - Considers project deliverability in terms of novelty, complexity, capability,
capacity, risk - and if started, project lifecycle status and how much delivered so far
Mandatory / Legislative Requirement / Political Imperative - Supports
investment, but considers if project scope goes beyond basic requirement.
Strategic Dependencies - Supports investment, but considers if project scope goes
beyond basic requirement i.e. does the project enable delivery of benefits on other projects,
or support transformational change?
Importance to ONS Reputationally - High supports investment, but considers if
project scope goes beyond requirement. Considers stakeholder expectation and impact of
not undertaking the project
Portfolio Balance - Ensures the Investment Portfolio is well balanced across priority
areas such as: Economic statistics; Digital agenda and IT modernisation; Property
expenditure; Improvements to Statistical Outputs (including Crime, Migration, NSQRs)

19. Title: Executive Zoom
0.00
0.50
1.00
1.50
2.00
12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23
SR10
Q1 Q2What are the investment headlines ?
• Project required to provide xxxxx framework essential for National Statistics;
• Project will deliver a tactical solution for xxxxxx;
• Project will enable compliance with XXXXX;
• Project aligned to ‘Red to Green’ agenda;
• Project requires £xm more funds than previously earmarked by IPC;
• Change of scope meant inclusion of XXXX software upgrade costs (£0.xm)
– PDU opinion is that it should be funded by Infrastructure and Software
Assurance Programme
• Further work needed on economic benefits given importance to National
Statistics
• Currently unclear who will own asset after 5 yr contract
• Project will continue to use remaining existing budget (£xk to cover team
until prioritisation exercise is completed).
What is the impact on the
Portfolio?
What are the key dependencies?
• Tactical solution is an enabler
for xxxx
• Hosting Improvement Project and
Content Delivery Network to be in
place by July 12
What are the key risks?
• Risk Potential Assessment (RPA) is medium risk
• Portfolio Delivery Unit (PDU) rating of Medium based on business case risks
Financial (Cash Releasing)
BenefitsCosts
What are the key investment indicators?
Attractiveness:
Positive ROI, critical
to strategy,
understated
economic benefits.
Affordability:
£xM additional
funding required
Achievability:
Complex project,
new technology,
involvement of
supplier, med risk
Political/Legislative/Contract No
Strategic Contribution Analysis Critical
Business Case Version Full Business Case
Net Present Value £1.234m
Total Earmarked Funding £0.321
Total Costs/Benefits £4.5m / £6.7m
Benefits Confidence
Assessment
Low/Medium
Risk Potential Assessment Low
MPA/ERG Governance Yes - disclosure
£M
Financial Years
What kind of benefits does the investment deliver?
What is the cost and benefit forecast?
£0.xM
£x.xM
Financial (Non Cash Releasing)
Economic
What are the implications of not investing in the project?
• Any further delays would have major impact on xxxxx outputs.
• XXX will become outdated, reliable XXX data not available to underpin XXX
£x.xM
Do Not
Invest
Hold/
Re-sequence
InvestELT Business
Decision:
19
Example: Executive Zoom

20. #4 Building the Team
uConsolidation uCrossover uSmall, upward facing team
uAd hoc, legacy portfolio
uAtkins Review and Census Driver: Capacity + Capability
uPyramid to Diamond

21. We know how good
we are today
We know how good
we want to be in a
year 21
Understanding Where We Want to Be

22. #5 Longer paced events…
uDownward facing functions uMarginal Gains
uPortfolio team - layered progression
uCentralised PPM Profession

23. We can see killer dependencies on the horizon
We know when business cases
are planned for approval
We can we see strategic
resource risks in time 23
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Project …
Original: Delivery Journey

24. RED
Text
BLACK
Text
Programme Dependency
Programme Level 0
Milestone
LEGEND
Dependency between
programmes where “GIVE”
is planned before “GET”
Dependency between
programmes where “GIVE”
is planned after “GET”
‘Give’ Product Dependency
‘Get’ Product Dependency

25. #6 Longer Term Goals
P
P
u New portfolio u New challenges

26. This presentation was delivered
at an APM event
To find out more about
upcoming events please visit our
website www.apm.org.uk/events