Corporate Programme and Project Management (PMO) …€¦ · Programme and Project Management (PMO)...

Corporate

Programme and Project Management (PMO) Policy

Document Control Summary

Status: New

Version: v5.2 Date: 19/05/2016

Author/Owner/Title: Martyn Perry – Head of Programme Management Office

Approved by: Policy and Procedures Committee Date: 17 March 2016

Ratified: Trust Board Date: 18 March 2016

Related Trust Strategy and/or Strategic Aims

People who use our services are at the centre of all we do. Deliver best practice that is evidence based and effective. Responsive. Innovation. Leadership.

Implementation Date: January 2016

Review Date: January 2018

Key Words: Programme Management, Project, Project Management, CIP, PMO

Associated Policy or Standard Operating Procedures

Trust Project Lifecycle SOP

Contents

1. Introduction .............................................................................................................. 2

2. Purpose ..................................................................................................................... 2

3. Scope ........................................................................................................................ 3

4. Roles and Responsibilities ...................................................................................... 3

5. Programme and Project Processes ........................................................................ 5

5.1 Project Definition ..................................................................................................... 5

5.2 Programme Definition ............................................................................................. 6

5.3 Programme and Project Governance ...................................................................... 6

5.4 Programme and Project Principles ........................................................................ 12

5.5 Programme and Project Meetings ......................................................................... 13

5.6 Project Process ..................................................................................................... 13

6. Annex 1 – SSSFT Programme Governance .......................................................... 14

Programme and Project Management (PMO) Policy/March 2016

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7. References .............................................................................................................. 15

Change Control – Amendment History

Version Dates Amendments

V1.0 22nd January 2016 Initial draft created

V2.0 7th February 2016 Processes Included

V3.0 11th February 2016 Removal of process into separate SOP

V4.0 29th February 2016 Consolidation of TMT Feedback comments and

updated SSSFT Programme Governance Diagram.

V5.0 11th March 2016 Updated with feedback from Director of Business

Development and Head of Business and Commercial

Development

V5.1 5th April 2016 Complexity Matrix and Project Brief terminology

amended

V5.2 19th May 2016 Change of policy title from Programme Management

Office Policy

1. Introduction

South Staffordshire and Shropshire Healthcare NHS Foundation Trust (SSSFT) routinely

undertakes multiple projects and programmes of work across all of its directorates and

divisions. To manage these schemes of work effectively, the Trust requires a robust and

comprehensive approach to project governance and management.

This Policy details the approach that should be taken by all staff across the Trust, for all

programmes and projects identified within the Trust’s Programme Management Office

(PMO).

The Policy is based on the established best practice methodologies for project and

programme management, PRINCE2 (PRojects IN Controlled Environments) and

Managing Successful Programmes (MSP), but has been tailored to best fit with the resource

availability and the requirements of the Trust.

2. Purpose

This Policy will provide consistency around project governance and management across the

Trust. Adopting a Trust wide framework for the management of programmes and projects

has the potential to provide the following benefits to the Trust:


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Supporting localized development of Specific, Measurable, Appropriate, Realistic

and Time based (SMART) project plans

Enabling all trust projects to be measured in the same way

Provide a greater likelihood of projects achieving the desired result

Higher return on investment success

Ensure efficient and best value use of resources

Provide greater assurance and organizational awareness of project progress and

projects with interdependencies across directorates and divisions

Satisfy the differing needs of the project’s stakeholders

Increased stakeholder satisfaction

Enhanced communication, collaboration and strategic alignment

Learning and on-going improvement in organisation performance

Reduce risk to the Trust from a financial, procurement and governance

perspective

Build project management capability within directorate and divisional teams

3. Scope

This Policy is applicable to all groups of staff involved with the review and successful

delivery of projects within the Trust.

4. Roles and Responsibilities The roles and responsibilities related to the ongoing management of projects within the organisation are outlined below:

4.1 Project Management Teams

Project management teams operating throughout all directorates and divisions in the

organization (as shown in Annex 1) have a responsibility to actively encourage compliance

with the Policy as outlined below:

Ensure that projects and programmes are appropriately governed and managed

with adherence to the project management principles (Section 5.4) depending on

whether they are low, medium, high or business critical

Manage project progress, updates and documentation through the standard

methodology, PMO templates, and reporting frequency as specified by the PMO

(Section 5)

Ensure project progress reporting routes and associated meeting Terms of

References (ToR) align with SSSFT Programme Governance (Annex 1)

Identify and engage the appropriate project management resources where

required in a timely fashion, e.g. engage with Information Management &

Technology Projects Team (IM&T Projects) for IM&T system/related projects,

the Estates project team for building projects etc.

Involve other services as appropriate, such as PMO, IM&T, Estates, Safety

and Risk, Finance and Human Resources from the beginning of projects and

throughout the delivery


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Inform the PMO of all projects awaiting approval and currently being undertaken,

so that a Trust Project Register can be maintained and made accessible to all

(with reference to structure in Annex 1)

Accountable for the operational project delivery within their own division and

directorate

Exception reporting where milestones and delivery dates are forecast to be

missed

4.2 Programme Management Office

The PMO Team provide a centralized project support function. Supporting the delivery of the

Trust’s programmes of work and projects managed locally by the divisions that have been

commissioned by the Trust to help achieve its strategic objectives. The PMO is responsible

for:

Implementing and assuring a standardized best practice approach to project and

programme management across the Trust

Improving, measuring and evidencing project success rates and related realized

benefits

Providing a central information repository and reporting function for all of the

Trust’s project activities. Ensuring an open and honest approach to project

management that is transparent to other divisions in terms of resource

requirements, delivery, outputs, timescales and risks

Identification of inter-dependencies, resource constraints and lessons learned

across all projects captured within the PMO

Improving communication between project teams and stakeholders between

separate directorates and divisions

Internal consultancy/mentoring on project management processes/methodologies

Training and assistance in use of MS Project as a standard software tool for

creation of SMART project plans

Liaison with Trust’s Business Development directorate, Quality and Clinical

Performance Directorate and Finance& Performance directorate to ensure all

Trust Strategic Aims, Business Plans, Quality Improvement Plans, Risk mitigation

plans and Cost Improvement Programmes inform the need for new project

creation

To ensure that the identified projects link into directorate, divisional and Trust

wide business plans

4.3 Trust Management Team (TMT):

The members of TMT act as the Programme Board for Business Critical projects and have

responsibility for:

Legitimising project goals and objectives

Monitoring progress of organizational programme and project goals, objectives

and realization of benefits

Reviewing and agreeing on project business prioritisation and RAG status using

frameworks for guidance (Section 5.)


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Providing decision-making for the strategic goals that projects may be

contributing to

Providing support to the Project Owner

Providing guidance on required action for projects in exception

(approval/rejection of project exception plans)

Hold Project Owners and Project Managers accountable for project delivery and

compliance with the PMO policy

4.4 Deputy Chief Executive/Director of Finance Responsibilities:

The Executive Lead accountable for this policy and responsible for embedding it within the

Trust. The PMO and the Head of Programme Management report to the Deputy Chief

Executive/Director of Finance.

All staff involved in projects are expected to comply with the project governance and

management principles and procedures as outlined in this policy in Section 5.

5. Programme and Project Processes The PMO has established a number of systems, processes and standardized documentation for the effective management and reporting of the Trust’s projects. Section 5 details the definitions, governance, principles and processes that all project management teams within the organization must follow for effective project management.

5.1 Project Definition

What is a Project?

A project carries out work to achieve a clear objective, usually to bring about change. It is a temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value. (OGC, 2009) Projects can be distinguished from the everyday business as usual (BAU) activities in three main ways:

Projects are the means by which changes are introduced into the organisation

A project is temporary with a defined start and end date

Projects often bring together people with different skills from different

departments and even different organisations; the project environment is often

cross-functional in nature

A project:

Has a defined start and finish

Needs people and resources for a specific time

Focuses on a single or a few objectives

Brings specific change to an organisation

Brings benefit to an organisation, usually on completion


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Must have changes managed as exceptional events

Can have sub-projects that are related to the project outcome and to each other

Can be applied at any level of an organisation

A project is usually deemed to be a success if it achieves the objectives within an

agreed timescale and budget

Tender Bids and Implementations

All tender submissions will not be counted as projects within the PMO until a notification that

the bid has been successful.

At the point of implementation, implementation teams will produce and share a full

implementation plan that will be shared with the PMO and this will include the need for

resources and elements of the implementations that need to be addressed through the PMO

process e.g. IM&T and F&E.

Sources of Projects

Annex 1 provides a visual representation of the sources of the Trust’s projects and the

associated project reporting and assurance. Typically, projects originate from (but are not

limited to) Trust Strategic Aims, Business Plans, Quality Improvement Plans, Risk mitigation

plans and Cost Improvement Programmes inform the need for new project creation.

5.2 Programme Definition

What is a Programme?

A programme is a set of related projects and activities that deliver benefits to the organisation’s strategic objectives. A programme is likely to have a lifespan of several years.” (The Cabinet Office, 2011) A programme is made up of a specific set of related projects identified by an organisation that together will deliver a defined objective, or set of objectives, for the organisation. The objectives, or goals, of the programme are typically at a strategic level so that the organisation can achieve benefits and improvements in its business operations. A programme:

Aligns with the organisation’s overall strategy

Delivers benefits incrementally throughout its life

Has a number of projects under it that are related to the overall strategy but may not be related to each other

Has long term timescales

Brings wide ranging change to an organisation

5.3 Programme and Project Governance

Programme and project governance is the framework that ensures that the programme or project has been correctly conceived and is being executed in accordance


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with best project management practice and within the wider framework of the Trusts governance processes. An effective programme and project governance framework is comparable to the governance framework used for BAU. It is about ensuring that resources are allocated to the highest priority projects which are managed to ensure they deliver the value expected of them. An appropriate governance framework helps save money by ensuring that all expenditure is appropriate for the risks being tackled, and that project issues are identified early and managed correctly in line with strategic objectives. Programme and project governance is not about micro-management; rather it is about setting the terms of reference and management framework, defining the boundaries and ensuring that planning and execution are carried out in a way that ensures that the project delivers benefits. Annex 1 provides the Trust’s Programme Governance Structure, articulating the reporting and assurance pathways for the Trust’s projects. 5.3.1 Implementation Governance Implementations have a parallel governance process. All tenders are signed off by the Director of Business Development and the Director of Finance prior to submission. These decisions are ratified by BDIC and separate governance paperwork exists for this process. Progress on implementations is monitored through two board committees (BDIC and QGC) and separate updates are delivered at TMT on a fortnightly basis. 5.3.2 Project Prioritisation The projects within the SSSFT Programme need to be prioritised so that relevant

stakeholders, meetings and boards are able to monitor their progress. It also allows the

PMO to highlight resource pressures and project interdependencies in line with the aims and

objectives of the organisation.

Below is a framework to be used by the PMO to prioritise each project and to provide

guidance on the corresponding level of project controls required to manage the project

effectively. Project priorities will be discussed and reviewed by TMT. The framework is used

for guidance only, exceptions for project priority can be applied in agreement with TMT e.g. a

project risk rated 16 or above could be mutually agreed and notified to the PMO to be

prioritised as Medium with reference to other Trust priorities at the time.

Business Critical is the highest priority level of project. The project priority informs the level

of supporting documentation required and the necessary reporting. For example, a business

critical project will require a higher level of detail in its supporting project documentation and

more detailed project plans to provide sufficient assurance because of its importance to the

Trust.

Changes to the priority of a project should be infrequent.

Business Priority

Factor Low Medium High Business Critical

Patient Safety No incident response/no anticipated

improvement to patient safety

Responding to an incident/anticipated

improvement to patient safety

Responding to multiple incidents/Significant

anticipated improvement to patient safety

Patient Experience/Service Improvement No anticipated improvement.

Minor anticipated improvement.

Significant improvements to services/patient

experience.

Delivery of mandatory standards (E.g. CQC

outcomes)

Cost Saving (CIP) Predicted Saving

Under £10K Predicted Saving Exceeding £10k

Predicted Saving Exceeding £50k

Predicted Saving Exceeding £250k

Risk Not on Risk Register 15 and below

16 and above.

Or significant, long-lasting damage to organisational reputation if risk occurs.

Contract Compliance/Complexity No Breach or minor contract changes

Single breach or significant contract

changes

Multiple breaches or multiple contracts with

new suppliers

Trust Strategic Aims (PRIDE)

No alignment or minor contribution to other work that is linked to a strategic

outcome. Direct contribution to a

strategic outcome.

Direct contribution to more than one strategic

outcome.

5.3.3 Document Complexity Matrix The project priority will determine the level of supporting documentation required to ensure

that the project is effectively managed. It is the responsibility of project managers to ensure

that projects are supported with the requisite documentation and Trust standards according

to their priority.

Documentation Project Priority

Low Medium High Business

Critical

Implemen

tations

Project

Mandate

All sections

Project

Brief

1. Contents

Completed by PMO 2. Instructions for Completion

3. Purpose

4. Document Benefits

5. Authority Responsible

6. Background

7. Project Objectives

8. Scope

9. Interfaces D

10. Quality Expectations D D

11. Outline Business Case D

12. Risks and Assumptions D

13. Project Governance

14. Communications Management Strategy

D D

15. Configuration Management D

16. Associated Documents and Supporting Information

D D D D

17. Project Closure/Post Project Evaluation

18. Equality Impact Analysis

19. Quality Impact Assessment D D D D

20. Privacy Impact Assessment D D D D


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Project

Plan

Outline Project Plan

MS Project Plan

Detailed MS Project Plan (critical path, milestones, dependencies)

Activity

Reporting

SSSFT PMO Project Register

PMO Site D D

Highlight Report

Safeguard Risk Register

Project

Closure

Project Closure Report D D

Lessons Learned Event D D

Tender

Impleme

ntations

Financial Risk Assessment T Form Tender Submission

D = discretionary. The project manager or project owner may decide to complete this

documentation if they wish.

5.3.4 Project Reporting (RAG Status) The Project RAG Status is agreed between the Project Manager and the PMO and reflects how a project is currently performing. This will be

used by the PMO to flag any issues to TMT that may be arising or currently being experienced.

Changes to the RAG status of a project may be frequent.

RAG STATUS

The following guide is used to determine the RAG status of a project during its delivery. Time Scope Cost Risk

RED Project is confirmed as

behind schedule.

Project failing to deliver objectives and

deliverables within scope as planned.

Project becomes a priority for review by

TMT when it is forecast to not realise the anticipated CIP.

Predicted overspend of

more than 25% of established project

budget. Project has identified risks which may affect

ability for successful completion.

AMBER

Project is forecast to go behind schedule at

a future date.

Delivering majority of objectives and


Some areas of project scope delivery are

cause for concern and need reviewing.

Predicted overspend of <25% Risks present with mitigation plans in action.

GREEN On Schedule.

Delivering all objectives and


Within budget.

Planned CIP on target. All risks successfully managed.

5.4 Programme and Project Principles

The following principles must be adhered to when running programmes and projects, although Implementations sit outside the PMO process, they would be expected to follow these principles:

Every programme and project should add value to the service/organisation

and be consistent with Trust strategic objectives. If during a programme or project it becomes clear that there is reduced or no value or return on investment (business justification), then the programme or project should be stopped

Programme and project objectives and benefits must be clearly defined, measurable and achievable at the beginning of a programme or project and then tracked for delivery through the PMO

Programme and project governance and management should be tailored to the complexity and environment of the programme or project within set parameters. The level of detail needed at the various programme or project stages should remain appropriate for the size and complexity of the project in agreement with the Project Owner, TMT and the PMO

Programmes and projects should encourage innovation and allow an acceptable level of risk taking and failure

Key stakeholders (e.g. service users, customers, IM&T, Safety and Risk,

Health and Safety, Estates etc) must be involved at programme and project

initiation and throughout

Roles and responsibilities for all involved in the programme or project need to be clearly documented in the Project Brief

Management should be by exception, to avoid unnecessary micro-management

Lessons learned during a programme or project must be captured and shared with the PMO to ensure errors are not repeated and best practice is adopted

Programmes and projects should be broken into Milestone stages for review and

ease of tracking. Milestones enable a decision about whether to proceed to

the next of a programme or project made between the stages to support the

management of risk

It is important to understand what the constraints of any programme or project are in order to clearly define the boundaries in which programme or project work must be done. Typical constraints are funding, the scope of the programme or project, available resources and time. These are to be documented by project managers in the Project Brief

Projects should have a definite start and finish point within which their objectives need to be fulfilled

Change in project scope must be controlled and documented or benefits may be better served by starting a new project, rather than risking the agreed benefits

Trust values should be complied with, for instance, it is important to be honest and open about issues and risks

Interdependencies with other projects should be identified (documented in the

Project Brief) and managed

Project objectives and benefits should be sustained after transition to BAU

All projects should have their success metrics agreed during the Start-up phase and these should be continually monitored. They should include standard metrics such as achievement to time, cost, scope and benefits delivery, which support a continuous improvement approach to project management across the Trust

All project closures should have be reviewed against the original aims/objectives and benefits to evaluate its effectiveness


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5.5 Programme and Project Meetings

Programme Board – accountable for the overall delivery of the Programme and for

developing and supporting a long-term strategy to improve service quality, cost and

delivery. Pre-established programme boards exist for all project management teams and are

documented in Annex 1

Project Steering Group – responsible for the direction and implementation of the project

plan, and ensures that:

Issues are resolved appropriately or are escalated to the relevant place Regular reports are produced Effective communication is undertaken Strategies are considered and recommended Review risks, issues and budget

5.6 Project Process

The processes required to be undertaken when a new project is identified can be found in

the Programme Management Office (PMO) Processes Standard Operating Procedure: LINK

(FLOW CHART)

6. Annex 1 - SSSFT Programme Governance

The following diagram shows the origins and progress reporting routes for the Trust’s projects.

7. References

The Cabinet Office (2011) Managing Successful Programmes. (4th Edition). London: The Stationery Office

Office of Government Commerce (2009) Managing successful projects with Prince2. London: The Stationery Office

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