1. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk

2. Chair's Opening Address Adrian Pyne Director Pyne Consulting 3. CREATING AN ENVIRONMENT WHERE PROJECTS CAN SUCCEED Adrian Pyne Open Forum Events Project and Programme Management: Delivering Quality Outcomes 25th May 2014 4 lPyne Consulting 4. lPyne Consulting Copyright 2014 Pyne Consulting Limited 5 PROJECTS DONT FIT 5. lPyne Consulting Copyright 2014 Pyne Consulting Limited 6 ORGANISATION CULTURE FIT FOR PROJECTS Vision Strategy Technology ProcessPolicies Values Organisation Rules Behaviours Symbols Relationships Perceptions Beliefs Assumptions Unwritten rules Common practice 6. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk 7. Tony Whitehead Deputy Director Major Projects Authority 8. MPA: Making a Difference Tony Whitehead Deputy Director, MPA 9. NAO Assurance of High Risk Projects (June 2010) Prime Ministerial MPA Mandate (January 2011) Collaborative partnership - CO, HMT and Departments Robust portfolio approach to high value, high risk Government projects and programmes Central overview of spending, milestones, benefits and assurance, integrated with HMT approvals Sea change in oversight of central Governments major projects at both individual & portfolio level UNCLASSIFIED10 MPA Launched 2011 10. OVERSIGHT The Government Major Projects Portfolio (GMPP) PLANNING Integrated Assurance and Approvals Plans and Project Reviews INTERVENTION The power to intervene where projects have stalled or are failing REPORTING Transparency in reporting regime for Major Projects UNCLASSIFIED11 MPA Wide Influence and Oversight 11. Government Major Projects Portfolio (GMPP) 12 Major project data reported quarterly by Departments, including timescale, cost, benefits, delivery confidence, leadership turnover 12. Green: Successful delivery of project/programme to time/cost/ quality appears highly likely, no major outstanding issues Amber/Green: Successful delivery appears probable, although attention needed to ensure risks do not materialise into major issues Amber: Successful delivery appears feasible, though significant issues exist. These appear resolvable &, if addressed promptly, should allow delivery Amber/Red: Successful delivery in doubt with major risks/issues apparent in a number of areas, needing urgent action to address and to assess whether resolution is feasible Red: Successful delivery appears unachievable. Major issues (definition, schedule, budget , benefits) do not appear to be manageable or resolvable. Project/Programme may need re-base lining and/or overall viability re-assessed 13 Delivery ConfidenceAssessment (RAG Ratings) 13. 14 MPA Annual Report published (23 May 2014) CEO appearance at Public Accounts Committee (5 June 2014) Regular NAO Reviews MPACommitment to Openness and Transparency 14. MPAObjectives 15 Challenge, Assure, Support Continue to provide challenge function to departments through timely and insightful assurance ahead of approval points, but also offer bespoke, specialist support and advice to help maintain project delivery momentum Create Project Based Controls through Alignment Work with CO and HMT to develop better alignment, so funding approvals, assurance and milestone checkpoints completed as smoothly as possible Encourage Strategic Prioritisation Facilitate a process supporting senior departmental decision making on project portfolios, based on resource constraints, risks & interdependencies Build Long Term Capability and a Profession Ensure all dept project teams have the talent and delivery skills needed, enrolling project leaders onto MPLA and promoting the profession 15. MPA: Making a Difference Tony Whitehead Deputy Director, MPA tony.whitehead@cabinet-office.gsi.gov.uk 16. Dr Carl Gavin Deputy Director BP Managing Projects Programme Manchester Business School 17. Improving Project Leadership and Capability - a case study: BP and Manchester Business School Managing Projects programme Dr Carl Gavin Senior Lecturer & Deputy Director BP Managing Projects Programme Manchester Business School, University of Manchester 18. Manchester Business School & BP The BP Managing Projects Programme Background Aims Programme structure Session themes Reflective practice Reflections on improving project leadership and capability Overview 19. Founded in 1965, the largest campus-based business & management school in the UK - 2,000 students, > 200 teaching staff Rankings: First in the UK for business research (RAE) FT rates our doctoral programme as number three in the world Forbes survey ranks our MBA programme 4th place outside US UK government body (HEFCE) ranks MBS teaching capabilities as Excellent, the highest category International centres in USA, Middle East, Hong Kong, China, Singapore and Brazil supporting a further 3,500 students worldwide Long tradition of teaching and research in the management of projects Manchester Business School 20. MBS - Executive Education 21. A BP Strategic University Partner since 2003 - BP/UoM Steering Group including BP Group CFO, Head of Engineering & Chief Scientist Research collaboration: BP International Centre for Advanced Materials (BP-ICAM) Funding of $100m over 10 years 14 projects underway BP Corrosion Laboratory (with MIT) Scholarships: 100 undergraduate bursaries per annum Recruitment: Early Engagement Programme Executive Education: Engineering Management Managing Projects University of Manchester & BP 22. Projects at BP 23. BP Managing Projects Programme Projects + Engineering Basics Training Projects + Engineering The BP Way Engineering Management Managing Projects Executive and Leadership Programmes 24. Began in 2007 17 cohorts of project managers through the programme to date (480 delegates) Supported by both MBS staff and BP subject matter experts Underpinned by a virtual learning environment (blended learning) Successful delegates awarded a Postgraduate Certificate in Managing Projects (60 credits) MBS has Registered Education Provider status with the Project Management Institute (PMI) - delegates who are PMI members can earn 400 Category 3 Professional Development Units (PDUs) for successfully completing the MP Programme BP Managing Projects Programme 25. Target audience is experienced, mid-career BP project managers basics of project management are assumed Programme explores concepts of leadership and judgement in project contexts to increase BPs capability to consistently deliver successful projects The programme is: designed to explore concepts, techniques, experience and examples of good leadership, judgement and practice an opportunity to share experience focused on practical application of programme concepts and techniques to generate real value for projects and BP an opportunity for BP project managers to network Manchester Method: experiential rather than analytical learning addressing real problems back in the workplace Aims of the Programme 26. Programme Structure Residential Week A Residential Week B 1 month pre-work 1 month pre-work 6 months reflective practice 6 months reflective practice Postgraduate Certificate (60 Credits) PDUs 12 month programme Psychometric testing Psychometric testing 27. Project leadership [core theme] Project strategy Project value Managing risk and uncertainty Contracting strategy Managing quality Managing change Creating safe, reliable, compliant facilities Human reliability Supplier oversight Learning from projects Mentoring Session Themes 28. Designed to be the bridge between the classroom and the workplace Stimulates thought about the application of programme concepts and principles within the delegates projects Supported by BP and MBS staff through the virtual learning environment throughout the programme Two assignments: Project Leadership and Creating a Distinctive Project / World Class Execution Assessed by University faculty to provide the credits towards the Postgraduate Certificate in Managing Projects MBS provide BP with an annual report of themes tackled within the reflective practice assignments Reflective Practice 29. I am a better project manager for participating in the programme The [programme] has changed my perception of project management and execution My perspective on my current job has changed dramatically The project teams I have lead since participating in [the programme] have been more effective, better organized, more quickly cohesive, and better aligned to the goals and issues each project presented The experience has been invaluable The programme has enabled me to take a step away from the day to day pressure of my project leadership role and provided an opportunity to experience alternative views and time to consider strategies to improve my own performance and that of my team Recent Delegate Comments 30. Projects are about people not just processes & procedures (however robust) Project managers are hungry for enhancing their leadership & people skills allow them to do so Force the application of learning to the workplace this changes the organisation Encourage project managers to teach what they have learned to their colleagues back in the workplace Capture, share and apply lessons learnt on projects in order to reduce risk and improve project outcomes (this is difficult!) Project managers need a sense of empowerment to proactively address the opportunities and challenges that they face in their projects this requires trust Reflections on improving project leadership & capability 31. Financial Times, 15th June 2014 32. Manchester Business School & BP The BP Managing Projects Programme Background Aims Programme structure Session themes Reflective practice Reflections on improving project leadership and capability Overview 33. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk 34. Andrew Brown Managing Director Acuity Business Solutions 35. 2014 Acuity Business Solutions Ltd Managing Complex Programmes within the Public Sector Andrew Brown Managing Director of Acuity Business Solutions 36. 2014 Acuity Business Solutions Ltd Introduction The challenges of major modernisation initiatives Streamlining without compromising quality of results Three areas to explore: Stakeholder Management Managing Change Planning with Resource Constraints 37. 2014 Acuity Business Solutions Ltd Managing Stakeholders 38. 2014 Acuity Business Solutions Ltd Stakeholder Challenges Lack of time Not PPM orientated Who? Personal agenda Not empowered Wont be told Sector complexities 39. A fully reformed Pension scheme IMPLEMENTATIONNON-PROJECT OTHER POLICY & LEGISLATION April 2015 April 2016 April 2015 April 2014 Programme Assurance Framework Technical Guide Annual Administrative enhancements PQ/TO/PO/FOI Responses Long term contributions Transitional Regulations Tiered Contributions Pension Scheme Funding Model Yr3 Increased Contributions Compliance 2015 Scheme Implementation Pension provider reprocuement Communications Planning April 2014 April 2017 April 2016 April 2017 Current Scheme Regulation Tiered Contributions Direction / TO Applications Financial Monitoring / Management REGULATIONS DEVELOPMENT BUSINESS AS USUAL 2015 Scheme Regulations Scheme Access Compliance Regime Single Tiered Pensions Implementation Single Tiered Pensions Regulations Scheme Valuation KEY Government Department Employer Representitive Pensions Administrators OUT OF SCOPE Protection Opt-out Implementation High Earners 2013/2014 Same sex marriage Pension Scheme Governance Single Tier Preparation Equality Impact Assesment Policy Impact Assessment 2015 PENSION REFORMS Budget 2014: Freedom to Choose Tiered Contributions Annual employment enhancements Communications Planning Annual Administrative enhancements Annual employment enhancements 40. A fully reformed Pension scheme IMPLEMENTATIONNON-PROJECT OTHER POLICY & LEGISLATION April 2015 April 2016 April 2015 April 2014 Programme Assurance Framework Technical Guide Annual Administrative enhancements PQ/TO/PO/FOI Responses Long term contributions Transitional Regulations Tiered Contributions Pension Scheme Funding Model Yr3 Increased Contributions Compliance 2015 Scheme Implementation Pension provider reprocuement Communications Planning April 2014 April 2017 April 2016 April 2017 Current Scheme Regulation Tiered Contributions Direction / TO Applications Financial Monitoring / Management REGULATIONS DEVELOPMENT BUSINESS AS USUAL 2015 Scheme Regulations Scheme Access Compliance Regime Single Tiered Pensions Implementation Single Tiered Pensions Regulations Scheme Valuation KEY Possible Slippage On Track Milestone has or will miss deadline OUT OF SCOPE Protection Opt-out Implementation High Earners 2013/2014 Same sex marriage Pension Scheme Governance Single Tier Preparation Equality Impact Assesment Policy Impact Assessment 2015 PENSION REFORMS Budget 2014: Freedom to Choose Tiered Contributions Annual employment enhancements Communications Planning Annual Administrative enhancements Annual employment enhancements 41. 2014 Acuity Business Solutions Ltd Managing Change 42. 2014 Acuity Business Solutions Ltd The Challenges of Change Organisational priorities Legislative compliance Better understanding of customer experience Political change political change Resource availability (staff and funding) The answer 43. 2014 Acuity Business Solutions Ltd The Programme Manager 44. 2014 Acuity Business Solutions Ltd Planning within Resource Constraints 45. 2014 Acuity Business Solutions Ltd What they said about planning A goal without a plan is just a wish Antoine de Saint-Exupry1900 1944, French aristocrat, writer, poet, and pioneering aviator In preparing for battle I have always found that plans are useless, but planning is indispensable Dwight D Eisenhower, Allied commander for the invasion of Europe 1944 Unless Commitment is made, there are only promises and hopes; but no plan Peter Druker, Business Guru 46. Less is More 47. 2014 Acuity Business Solutions Ltd 48. 2014 Acuity Business Solutions Ltd Summary www.acuitynet.co.uk 49. Mark Reilly Internal Audit Transport for London 50. Project assurance: ensuring the pre- requisites for success are in place Presentation by Mark Reilly M.Eng C.Eng MICE MAPM, Transport for London, and APM Specific Interest Group on Assurance 51. What exactly is assurance? assurance n. Emphatic declaration, guarantee; self-confidence, assertiveness; insurance esp. of life; certainty. (Source: The Pocket Oxford Dictionary.) assurance noun 1.the act of assuring 2.the state of being assured; sureness; confidence; certainty 3.something said or done to inspire confidence, as a promise, positive statement, etc.; guarantee (Source: www.yourdictionary.com) P3 assurance The process of providing confidence to stakeholders that projects, programmes and portfolios will achieve their scope, time, cost and quality objectives, and realise their benefits. (Source: APM) 52. What is the Assurer often asked? 18 Oct 06 57 I need to know that everything is under control? Is what I am being told is correct? I am going to get what I want? Will the project going to finish on time and within budget. If things are going horribly wrong and should I can the project!? 53. Assurance Landscape 18 Oct 06 58 Internal Audit External Audit Quality Assurance Health & Safety OGC GatewayTM Independent Engineer reviewsPMO/PMCoE Control Self Assurance NAO Policies Standards Processes Systems Project Audits Contract Audits Peer Reviews 54. Assurance Landscape 18 Oct 06 59 Internal Audit External Audit Quality Assurance Health & Safety OGC GatewayTM Independent Engineer reviewsPMO/PMCoE Control Self Assurance NAO Policies Standards Processes Systems Project Audits Contract Audits Peer Reviews Audit Committees Sponsors MDs & Directors Project Boards / SROs Programme Boards Governing Bodies Shareholders Public & media 55. ORGANISATIONS RISKS First Line of Defence Outcome: Control of risks ORGANISATIONS RISKS CONTROLS Application of a Management System, comprising policies, procedures, processes, standards, etc. ASSURANCE Management Second Line of Defence Outcome: Confirmation of control of risks (Verification) First Line of Defence Outcome: Control of risks ORGANISATIONS RISKS CONTROLS Application of a Management System, comprising policies, procedures, processes, standards, etc. COMPLIANCE Management assurance, comprising monitoring, checks and audits by Risk Management, Quality Assurance, PMOs, etc. ASSURANCE ASSURANCE Management Management Second Line of Defence Outcome: Confirmation of control of risks (Verification) First Line of Defence Outcome: Control of risks Third Line of Defence Outcome: Strategic overview of system of control ORGANISATIONS RISKS CONTROLS Application of a Management System, comprising policies, procedures, processes, standards, etc. COMPLIANCE Management assurance, comprising monitoring, checks and audits by Risk Management, Quality Assurance, PMOs, etc. INDEPENDENT REVIEW Assurance through independent reviews by Internal Audit, External Audit (e.g. NAO), independent peers, or external scrutiny. ASSURANCE ASSURANCE ASSURANCE Management Management Board & external stakeholders 18 Oct 06 60 Three Lines of Defence Model for Assurance 56. Integrated Assurance Framework Map the assurance communities of interest Establish a lead assurance provider for the project Provide a comprehensive, shared and consistent view of risk Set out the standards for Assurance Map assurance interventions 18 Oct 06 61 57. 18 Oct 06 62 Assurance maps 58. 18 Oct 06 63 Assurance maps 59. The APM Assurance SIG 18 Oct 06 64 4 work streams currently under way: Integrated assurance Developing an approach to collaborative working between assurance providers Project Auditing Sharing approaches and experiences in project auditing, and developing best practice guidance Measures for Assuring Projects Investigating and developing guidance on measures that can be used to gain assurance Assurance of Agile projects Development of guidance to applying assurance principles in fast- moving Agile environments 60. 18 Oct 06 65 61. Thank you 18 Oct 06 66 62. Question and answer session 63. Steve Messenger Chair DSDM Consortium 64. www.dsdm.org Separation Steve Messenger Chairman DSDM Consortium 65. www.dsdm.org Agenda The Business Transformation The Approach Using DSDM Foundations and Teams Exploration and Engineering Deployment Summary 2www.dsdm.org 66. www.dsdm.org History of DSDM Evolved from RAD Created Collaboratively by practitioners for practitioners DSDM Consortium not for Profit Agile Manifesto Founder 1995 DSDM V1 2003 DSDM V4.2 2007 DSDM Atern 2011 Agile PM 2014 DSDM Agile Project Framework 3www.dsdm.org 67. www.dsdm.org Agile PM Certified Trainer Chairman, DSDM Consortium DSDM Advanced Practitioner DSDM Certified Trainer DSDM Certified Examiner Agile Foundation certified examiner Agile Advanced Practitioner Certified Examiner Training, Coaching and Consultancy DSDM Early Adopter Boston Globe 4www.dsdm.org Steve Messenger 68. www.dsdm.org Steve Messenger Director, Herald Associates Limited Over 30 years experience in Software, IT and Project Management PRINCE 2 accredited Industries worked in Pharmaceutical Newspaper Control Systems Insurance (Lloyds of London) Local Government Hydrographic Electronic Sea Charts 5www.dsdm.org 69. www.dsdm.org The Business Transformation 2 Pharmaceutical Company Organisation already had number of separate companies Structure not meeting current business requirements Re-structure organisation into new company model 70. www.dsdm.org Complexity 3 Affected all aspects of organisation: Legal; Finance; IT; Supply Chain; HR; Procurement; Sales Short timescale for delivery Solution unclear Needed to consider All Business Processes All locations The company organisation Information 71. www.dsdm.org Decided to Use DSDM 2 Feasibility / Foundations to set the basis for the programme Overall Business Design Roles and Responsibilities Evolutionary Development to carry out the changes required Technical Process Organisational Informational 72. www.dsdm.org Foundations 2 Created the Vision so everyone understood the purpose and business imperatives Determined key areas to be involved Supply Chain; Finance; Legal / Tax; HR; IT Through a series of workshops, iterated through the best business design to meet the separation requirements Determined High Level Changes required Planned, including risks, early benefits 73. www.dsdm.org Foundations Project Organisation 2 74. www.dsdm.org Foundations - Teams 2 Legal Team Finance Team IT ERP Team Supply Chain Team HR Team IT Other International Finance and Tax Head of Finance Me Legal 75. www.dsdm.org Evolutionary Development 2 Each team had major objective(s) Iterated to determine best solution in their area Understood level of empowerment Understood interfaces and dependencies Cross team integration Team daily stand ups Cross team weekly stand ups Electronic project room Legal Team Finance Team IT ERP Team Supply Chain Team HR Team IT Other 76. www.dsdm.org Deployment 2 Many IT changes to ERP could be deployed early Similarly other IT systems New Ts and Cs for Employees New stationery Company Set Ups Information prepared Full switch over September not January Bedded in by January Legal Team Finance Team IT ERP Team Supply Chain Team HR Team IT Other 77. www.dsdm.org Agile Programme Management 78. www.dsdm.org Summary 4 DSDM worked well on large, complex project Small teams around a central business model / architecture Iterating to best solution Good Communication Good Leadership Well defined vision Beware Legal! 79. www.dsdm.org Questions? 80. www.dsdm.org Gated Review Processes Typical Gates 1. Permission to investigate an idea 2. Permission to build a Business Case 3. Business Case approval go ahead 4. Permission to test deliverables 5. Permission to deliver 6. Project closure 7www.dsdm.org 81. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk 82. Harvey Wheaton Chair Scrum Alliance 83. Scrum Inside Scrum Alliance Harvey Wheaton | 25th June 2014 84. Harvey Wheaton Chairman of the Board of Directors, Scrum Alliance Software development manufacturing, consulting, banking, video games Astra Zeneca, Cap Gemini, JP Morgan, Electronic Arts, Supermassive Games Projects large and small; Waterfall and Agile A passion for people and teams achieving extraordinary results 90 85. 91 Scrum Alliance 86. Inside Scrum Alliance Board of Directors CEO Staff of 18, expanding rapidly Running a sizeable membership organisation Continuously improving our products and services Major strategic goal of 500,000 Certified Scrum Professionals (CSP) by the end of 2023 92 Operations Projects Major Initiatives 87. 93 Advocacy EducationCommunity 300,000+ Scrum Alliance Members Transforming the World of Work 6,000+ new members per month 2 Global Gatherings per year Major program of certifications Software and non- software 88. Certifications 94 Membership typically starts with entry-level certification 89. 95 Scrum Framework Scrum is simple, but not easy! 90. 96 Scrum Inside Scrum Alliance 91. 97 Organisation Backlog Release Planning PO SM PO SM PO SMPO SM PO SM 92. 98 Epics and Personae 93. 99 Refined 94. 100 Business drivers/filters for prioritisation Agile Values and principles Applying to non-software Coaching support as well as training Organisational level Product Owner and ScrumMaster Alignment across all functions Lean start-up thinking Level of detail and complexity in the organisation Backlog Support/ operations vs projects Tools Some of Our Learning 95. Thank you for listening Harvey Wheaton | 25th June 2014 96. Adrian Pyne Director Pyne Consulting 97. THE MYTH OF AGILE PROJECT MANAGEMENT Adrian Pyne Open Forum Events Project and Programme Management: Delivering Quality Outcomes 25th May 2014 lPyne Consulting 98. lPyne Consulting Copyright 2014 Pyne Consulting Limited 105 MYTHS OF AGILE 1: AGILE IS NEW "Vercingetorix Throws Down His Arms at the Feet of Julius Caesar (50BC)", 1899, by Lionel Noel Royer Agile is new 99. lPyne Consulting Copyright 2014 Pyne Consulting Limited 106 THE PRINCIPLES OF AGILE Satisfy the customer, produce outcomes that result in benefits Embrace changing requirements Provide an environment for success that is sustainable Collaborative behaviours based on Trust Keep it simple At regular intervals reflect, learn and adjust Sounds like professional project management? 100. lPyne Consulting Copyright 2014 Pyne Consulting Limited 107 MYTHS OF AGILE 2: There is such a thing as Agile Project Management Why would a professional PM do more than they needed to? Good project management is agile? Discuss.. 101. lPyne Consulting Copyright 2014 Pyne Consulting Limited 108 MYTHS OF AGILE 3 Agile is a magic bullet 102. lPyne Consulting Copyright 2014 Pyne Consulting Limited 109 MYTHS OF AGILE 4 Scrum is a project management method 103. lPyne Consulting Copyright 2014 Pyne Consulting Limited 110 MYTHS OF AGILE 5 Agile cannot work in my organisation 104. lPyne Consulting Copyright 2014 Pyne Consulting Limited 111 ORGANISATION CULTURE Vision Strategy Technology ProcessPolicies Values Organisation Rules Behaviours Symbols Relationships Perceptions Beliefs Assumptions Unwritten rules Common practice 105. lPyne Consulting Copyright 2014 Pyne Consulting Limited 112 THE TRUTH ABOUT AGILE: VALUE PWC report 3rd Global survey on the state of project management: Project success rates 59% with agile approaches. ~ 30-40% without PMI Pulse of the Profession 2012: Organisations with the best initiative success rates were agile. UK Government ICT Strategy 2011 and Digital Strategy 2012 106. lPyne Consulting Copyright 2014 Pyne Consulting Limited 113 ITS LUNCHTIMECMON LETS BE AGILE! E: a.pyne@btconnect.com 107. Question and answer session 108. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk 109. Chair's Afternoon Address Adrian Pyne Director Pyne Consulting 110. PEOPLE: THE POOR RELATION TO PROCESS Adrian Pyne Open Forum Events Project and Programme Management: Delivering Quality Outcomes 25th May 2014 lPyne Consulting 111. lPyne Consulting Copyright 2014 Pyne Consulting Limited 118 People Process Technology HOW PEOPLE HAS FAIRED SO FAR 112. lPyne Consulting Copyright 2014 Pyne Consulting Limited 119 People Process Technology PEOPLE MAKE A DIFFERENCE 113. lPyne Consulting Copyright 2014 Pyne Consulting Limited 120 (T + C + Q) * P = V (Value) Time People Quality Cost Time QualityCost ADRIANS PROJECT MANAGEMENT PYRAMID (T + C + Q) = V (Value) 114. Colin Cram Chief Executive Open Forum Events 115. WELCOME TO NEW EU PROCUREMENT DIRECTIVE! A Game Changer or Disguised Incrementalism? http://www.europarl.europa.eu/sides/getDoc.do?pubRe f=-//EP//TEXT+TA+P7-TA-2014- 0025+0+DOC+XML+V0//EN Colin Cram Open Forum Events Ltd Marc1 Ltd colin.cram@marc1ltd.com Tel: 01457 239894 Mobile: 075251 49611 116. PURPOSE OF DIRECTIVE Bring up to date with developments in procurement and public procurement Less Bureaucratic More Commercial Trying to Force Modernisation of Procurement Encourages Innovation Support Economic Growth 117. MAIN FEATURES New Procedures Revised Procedures and Thresholds Shorter Timescales Emphasis on Whole Life Costing Preliminary Market Consultations Social and Environmental Innovation SMEs Collaboration and Centralisation of Procurement Activity eProcurement to be Standard Means of Communication and Information Exchange Easier to Rule out or Re-structure Unsatisfactory Suppliers and Staff 118. THRESHOLDS These remain the same except for services Euros Works 5,186,000 4,322,012 Goods and Services Central Government and NHS 134,000 111,676 Rest of Public Sector 207,000 172,514 For certain services: 750,000 625,050 119. SERVICES FOR WHICH Euro 750,000APPLIES Health Social Educational Cultural Benefit and Compulsory Social Security Services, Community, Political, Trades Union, Religious Services to the Community Prison Related Services Public Safety and Security Hotel and Restaurant Legal Services International Services Postal Services Miscellaneous such as tyre re-moulding 120. PROCEDURES Open Restricted Competitive Procedure with Negotiation Competitive Dialogue Innovation Partnership Negotiated Procedure (without prior publication) Framework Agreements Dynamic Purchasing Systems Electronic Auctions Electronic Catalogues 121. MINIMUM TIMESCALES OPEN PROCEDURE: Receipt of tenders 35 days from date contract notice was sent 30 days if tenders can be submitted electronically 15 days if PIN sent for publication between 35days and 12 months before contract notice sent. Also PIN must contain all information required for contract notice - as much as was available. 15 days in case of duly substantiated urgency. 122. MINIMUM TIMESCALES RESTRICTED PROCEDURE 35 days from date contract notice was sent for requests to participate 30 days after ITT was sent for receipt of tenders 10 days for receipt of tenders if PIN sent for publication between 35 days and 12 months before contract notice sent. Also PIN must contain all information required for contract notice - as much as was available. In case of duly substantiated urgency Requests to participate: 15 days Receipt of tenders 10 days Other than central government and NHS: contracting authorities may set time limit for receipt of tenders by mutual agreement. In absence of agreement, time limit at least 10 days. 123. MINIMUM TIMESCALES COMPETITIVE PROCEDURE BY NEGOTIATION Receipt of tenders 30 days for requests to participate 30 days for receipt of initial tenders from date on which ITT was sent Adequate time for all other tenders COMPETITIVE DIALOGUE and INNOVATION PARTNERSHIPS: 30 days for requests to participate 124. MINIMUM TIMESCALES DYNAMIC PURCHASING SYSTEM Follow rules of restricted procedure 30 days from date contract notice was sent or, following a PIN, the invitation to confirm interest is sent, for requests to participate 10 days for receipt of tenders following issue of ITT 125. COMPETITIVE PROCEDURE WITH NEGOTIATION Works, services or supplies Description of needs and characteristics required Specify contract award criteria The elements of the description which define minimum requirements Information adequate to identify scope and nature of procurement Initial, then subsequent tenders following each negotiation Can whittle down number of tenderers at each stage applying award criteria Can close the procedure by calling for final tenders 126. DYNAMIC PURCHASING SYSTEM Commonly used purchases supplies, works, services - characteristics generally available on market In effect creates preferred list of suppliers Fully electronic Follow rules of Restricted Procedure Call for competition to identify DPS is involved Indicate in procurement documents Nature and estimated quantity of purchases envisaged Any division into categories of products, works or services How DPS operates including electronic equipment used, technical connection arrangements and specifications All suppliers meeting selection criteria must be allowed to join Suppliers can apply any time All admitted participants must be invited to submit a tender 127. E-AUCTIONS For any supplies, services and works except for those that cannot be ranked using automatic evaluation methods Technical specifications can be established with precision May be used as Finale to Open, Restricted or Competitive Procedure with Negotiation Creating framework agreements Re-opening of competition for parties to a framework agreement Opening for competition of contracts to be awarded under DPS 128. ELECTRONIC CATALOGUES Can require tenders to be presented in the form of an electronic catalogue Can be made mandatory for certain types of procurement Can award contracts based on a DPS FRAMEWORK AGREEMENTS For Works, Supplies, Services Can conclude with one or more economic operators Where several suppliers, may need to invite tenders from all suppliers for specific contracts Should not be used by contracting authorities not identified in them. Must be indicated by name or other means such as a category of contracting authorities within a clearly delineated geographical area 129. MAKING LIFE EASIER FOR SMEs European Single Procurement Document Self Declaration Supporting documents/evidence normally required only before contract is about to be let Divide large contracts into lots May require justification for not dividing contracts into lots Overly demanding requirements re economic and financial capacity to be illegal 130. WHOLE LIFE COSTING/LIFE CYCLE COSTING Preferred approach Includes Costs related to acquisition Costs of use such as energy and other resources Maintenance costs End of life costs Costs imputed to environmental externalities linked to the product, service or works during its life cycle provided their monetary value can be determined. Includes emissions of greenhouse gases and other pollutants. Must be non-discriminatory 131. BANNING SUPPLIERS FROM BIDDING INCLUDES Significant and persistent deficiencies in performance of previous contract Professional misconduct Misrepresentation Collusion, fraud, corruption Non-payment of taxes Child labour, trafficking, terrorism, terrorist financing, money laundering 132. OTHER ISSUES Contracts between entities within public sector not covered by Directive Light regime for certain services requires either PIN or OJEU contract notice. UK can determine its "light touch regime" as long as compliance with the principles of equal treatment and transparency. Social criteria can include employment of long term job seekers or training for the unemployed., but must relate to works supplies of services of the contract. Can use as an award criterion the organisation, qualification and experience of staff assigned to contract performance Can require re-structuring of supplier Compliance: Citizens can complain if they believe tender award unfair 133. Colin Cram FCIPS Open Forum Events Marc1 Ltd Email: colin.cram@marcltd.com Tel: +44 (0)1457 239894 Mob: +44 (0)75251 49611 www.marc1ltd.com GAME CHANGER OR DISGUISED INCREMENTALISM? THANK YOU 134. Julian Foster Delivery Director Heathrow Airport Limited 135. Question and answer session 136. Tim Pryce Head of Public Sector Carbon Trust 137. Carbon in the public sector Delivering and financing a carbon reduction programme Wednesday 25 June 2014 Tim Pryce, Head of Public Sector, Carbon Trust 138. We have a mission to accelerate the move to a sustainable, low carbon economy 139. Why set up a carbon and resource efficiency programme? 140. Intergovernmental Panel on Climate Change Confirms global warming trends & that human action is the dominant cause of climate change The IPCC is an international body created by the UN in 1988 to collect and synthetize the latest science on climate change The 2013 report confirms that scientists are now all but certain that climate change is caused by human action, and that it is already leading to changes in weather patterns, with extreme events on the increase The 2013 report also confirms the expected negative impacts of current emission pathways on the economy and society 141. Financial and regulatory business case 1. UK Climate Change Act its the law! 2. Supporting legislation and strategies such as building regulations, DECs, NHS SDU strategy, mandatory carbon reporting 3. Fast increasing international action on climate change 4. Good potential to cut ongoing costs 5. Stakeholder reputation and local area leadership 142. How to set up a carbon programme 143. Build a team Nominate an empowered carbon and resource efficiency lead. And support them with: Visible senior engagement Necessary Estates personnel (e.g. covering different sites or buildings) Project leads to deliver specific projects in their remit Engagement of wider community, e.g. students (good work experience), councillors, relevant academics 144. Using the GHG protocol to set a baseline Scope 2: Utilities - indirect Scope 3: Other indirect Scope 1: Direct Wider influence- teaching and research Transport - commuting Production of purchased materials Transport business Purchased electricity*, heat and steam Transport purchased product** Fuels Combustion Owned Transport Process Emissions Fugitive Emissions Franchises and outsourcing Waste disposal Use of products * Green tariffs are treated using average grid emissions factors ** From/to point of ownership transfer Covered by CRC/ EU ETS Likely to be covered by legislation soon == 145. Setting carbon reduction targets Average 5 year CO2 reduction target 25% 146. Aggregate projects into a roadmap to meet targets 10% 20% 30% 40% Yr 5 Yr 10Yr 0 10% after 5yrs from Good Housekeeping, eg: M&T, Awareness, Training, Regular inspection & Audit, DEC compliance 20% after 10yrs from Invest to Save, eg: Insulation, Lighting, Controls, Heat recovery, CHP, Fuel policy, Plant replacement, New technology Cumulative effect 10% in 10yrs from Design & Asset Management, eg: Low CO2 new build, Property rationalisation, Procurement changes, Targets for refurb 147. Build business case and get senior sign off Build a business case o Quantify carbon and financial savings o Clearly state all savings and payback periods o Use discounted cashflow analysis for larger projects Board level sign off o At the highest possible level o With financing, responsibilities, monitoring all in place 148. Monitor and communicate progress Advanced metering- in time and space Monitor progress against targets Communicate savings and outcomes Carbon Trust Standard 149. Carbon Trust Carbon Management programme Building the team & setting the scope Measuring baseline and goals Identifying the risks & prioritising actions Designing a cost effective strategy Embedding carbon reduction into daily business Mobilise 1 Baseline & forecast 2 Identify & quantify 3 Approve Plan 4 Implement the Plan 5 Financial business case Technical and project management support Proven tools and templates 150. Going further - scope 3 reporting 151. Financing a carbon reduction programme 152. Options for financing your projects In simple terms, for a public body expenditure is financed: through your own money (cash) though grants/ incentives through public and private debt But you may be able to explore other options by setting up a SPV (special purpose vehicle) 153. External finance- public money Generation support: FITs for electricity generation RHI for heat generation UK Government debt and loans: NLF and PWLB Salix Green Investment Bank (private money too) EU funds: Horizon 2020 funds European Investment Bank money 154. External finance- private money Private debt finance Carbon Trust/ Siemens scheme, RBS, Aviva Use external ESCo supplier: CEF framework provides contracts, suppliers and (optionally) funding REFIT framework is suppliers and contracts only New Essentia framework too SPVs or JVs make possible: Equity finance (issuing shares) (possibly) off balance sheet loans 155. Case study - Addenbrookes Cambridge Part of Cambridge University Hospitals NHSFT New energy centre for existing and expanded hospital site Total cost of 36m, funded by Aviva and GIB Used NHS CEF framework to secure an ESCO contractor Plan owned and operated by the ESCO (Mitie) via an SPV Expected to save c. 25,000 tCO2 per year (almost 50%) and a net lifetime saving to the hospital of c. 25m 156. www.carbontrust.co.uk tim.pryce@carbontrust.co.uk 020 7832 4662 157. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk 158. Alison Copley Principal Associate for Transformation West and South Yorkshire and Bassetlaw Commissioning Support Unit 159. Momentum Alison Copley| 25 June 2014 160. Managing momentumwhen there are multi partner/ organisations involved and the key agenda is integration or whole systems improvement. Pace Journey Relationships Alison Copley, Principal Associate for Transformation 161. Context: Commissioning Support Unit and what we do Transformation team Local people focus Customer base includes clinical commissioning groups, acute trusts, community interest providers and local authority providers and commissioners A number of big integration programmes Service reviews and redesigns Evaluation and research 162. How do you achieve the right pace of change and keep momentum going? 1SRO ManyChangeleaders 163. How do you achieve the right pace of change and keep momentum going? Start less, complete more 164. Is the journey really as important as the immediate goals? Use the substance of project management to make a difference, but dont show the wires 165. Is the journey really as important as the immediate goals? NIHism is an authentic reaction Facts dismantle barriers 166. Is there real benefit from facilitating the relationships between your stakeholders in terms of future transformation? Stakeholders move across organisations and are multi lingual 167. Risk real and present? Advance until apprehended! 168. Momentum = Moving forward Pace-maker Journey together Collaborative Relationships 169. Questions? 170. Will Laing Business Delivery Manager for Local Government Crown Commercial Service 171. Project and Programme Management A Case Study IT in Local Government Will Laing Business Delivery Manager, CCS 172. Overview The Crown Commercial Service (CCS) The LGAs National Category Management Strategy for IT Sourcing Project and Programme Managers Commercial Reform182Commercial Reform182 173. Three key inter-related service areas Indirect Advisory Building the Commercial Profession Direct Buying 183 174. Vision Enthusiasm Governance ENGAGEMENT, MANAGEMENT AND LEADERSHIP Responsive Reliable Relationships We have a customer centric culture We understand our customers We exceed expectations We deliver an exceptional experience We must create a culture which drives and encourages excellent customer service 184 Establishing a customer-centric service 184 175. LGA National ICT Strategy ICT is one of three categories prioritised by the LGA; construction and energy are the others National category lead is Terry Brewer, Divisional Director, LB Harrow (formally Camden) ICT leadership provided through SOCITM and the Local CIO Council The National ICT Strategy has just been published by the LGAs National Advisory Group Key themes Local ownership and local leadership each region can address its own priorities Technology opportunities Savings and commercial improvements Operational delivery Major national agreements developed in partnership between CCS, the Pro5 and Government Digital Service CCS has a significantly expanded regional Customer Service function Drive as much input and influence as possible from customers Have defined roles for LG staff that want to get involved 5 176. 6 Programme Structure 177. Software Applications Software Licensing G-Cloud and Local Government Supplier Relationship Development Aggregation Projects: desktop alliance information sharing wireless concession data hosting commercial improvements technical innovations 10 SMEs Open Standards InnovationCollaboration 176m - 120m National Programmes 178. Sourcing Programme and Project Managers Two key frameworks: ConsultancyONE RM1502 Average Savings of 22% 20 Supplier of PPM services in Lot 3 Mandated in Central Government (100k-2m projects) Over 100m spend Contingent Labour One RM962 Average Savings of 24% Over 140 Suppliers in the PPM category Mandated in Central Government Used by over 30 contracting bodies with 50 more in train Commercial Reform188Commercial Reform188 179. Delivering value for the nation through outstanding commercial capability and quality customer serviceGet in touch Tel: 0345 410 2222 Email: info@ccs.gsi.gov.uk Web: http://ccs.cabinetoffice.gov.uk Connect with us on LinkedIn Follow us on Twitter @gov_procurement 189 180. Question and answer session 181. An open forum to debate, analyse and distil government policy and best practice initiatives. www.openforumevents.co.uk 182. Chair's Closing Address Adrian Pyne Director Pyne Consulting