APM chairman Steve Wake, PGCS Symposium, 11th and 12th May 2015
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This document appears to be a slide deck presentation about project management and earned value management (EVM) in the UK Ministry of Defence and government. Some key points: - EVM has been mandated for large UK MoD projects since the 1990s but implementation has been lacking. - In 2006 it was mandated for demonstration phases of new Category A, B and C projects. - The structure of the MoD has undergone transformation and in 2015 a new bespoke trading entity was set up. - The presentation discusses improving project accountability, governance, and developing individual and organizational capabilities in project management. - It promotes the Association for Project Management's guidelines and certifications in EVM as the recognized
APM chairman Steve Wake, PGCS Symposium, 11th and 12th May 2015
- 1. Slide 1 Steve Wake Chairman Association for Project Management UK
- 2. Slide 2 The UK MoD EVM operating environment (maybe)
- 3. Slide 33 Three nations divided by a common language
- 4. Slide 4 2004: USA – UK Reciprocity Agreement
- 5. Slide 55 APM SIG ANSI PMI AUSTRALIA JAPAN UK SECTORS: DEFENCE,GOVERNMENT, TRANSPORT,CONSTRUCTION,RETAIL,ENGINEERING ETC OGC NAO EPMF PROFESSIONAL BODIES MOD HMG PAC ISO
- 6. Slide 6 2006 - The UK Mandate • Mandate the use of EVM from 01 Jan 06 for the Demonstration phase of all new Category A, B and C projects for DPA and DLO hosted IPTs. • Encourage IPTs to assess the usefulness of EVM for the management of all other stages particularly Assessment and Manufacture for STP projects.
- 7. Slide 7 It Was a Trap!
- 9. Slide 9 2015 …. Where is Australia?
- 10. Slide 10 The UK MoD Project Controls/EVM Operating Environment (maybe)
- 11. Slide 11 When was this? DE&S lacks systems and expertise on most equipment projects to link industry payments to progress, even though this technique, known as earned value management, has been mandated since the 1990s. Our review of a sample of major defence projects found that most underspend had not come from efficiencies, but from poor project team or contractor performance. DE&S = Defence Equipment and Support
- 12. Slide 12
- 13. Slide 13 Don’t worry….. (maybe)
- 14. Slide 14
- 15. Slide 15 Ministry of Defence • Long transformation programme • Finally resulting in new body April 2015 • Performance measures as yet unset
- 16. Slide 16 EVM in MOD • Earned Value Management Our Policy • EVM is mandated for all Defence Equipment and Support (DE&S) Cat A, B and C projects (i.e. with a value of £20M or more), that are entering Demonstration phase. Beyond the mandated group, the use of EVM or other project control techniques must be considered, based on the level of risk and value for money. • Source: The Commercial Toolkit on AOF – Vers 1.1 dated 1 Sep 2010 • https://www.aof.mod.uk/aofcontent/tactical/toolkit/downloadsindexed/evm/ evm_cps.pdf?zoom_highlight=%22earned+value%22#search="earned value“
- 17. Slide 17 MOD (Old Structure) Policy: Defence Board Sponsor: Equipment Capability Area Deliverer: DE&S User: Front Line Commands Manufacture: Industry MOD Boundary Whitehall Boundary
- 18. Slide 18 MOD (New) Policy: Defence Board Deliverer: DE&S Sponsor & User: Front Line Commands Manufacture: Industry MOD Boundary Whitehall Boundary Bespoke Trading Entity
- 19. Slide 19 Major Projects Authority •Looks at project performance across UK government •High level sponsorship
- 20. Slide 20 Accountability • Project leaders need to be empowered to get the job done, we currently have: • complex accountability structures • unclear lines of responsibility • We are increasingly clarifying the accountability and responsibility of project leaders with formal letters of appointment, explaining: • the role • accountability • tenure • With a full understanding of remit, SROs will be able to have more rigorous discussions with decision makers 20
- 21. Slide 21 Strategic Prioritisation / Front end loading 21 • Vision – Strategic Prioritisation • Make the right decisions about the projects portfolio based on a holistic understanding of resourcing, constraints, risk and interdependencies • Identify underperforming projects early and intervene where necessary to turnaround, disaggregate or cancel these projects • Inform transition discussions around the department’s project portfolio in advance of, and following, the 2015 election Vision – Front end loading • Ensure that the initiation phase of a project is undertaken rigorously and only the right projects are started, by assessing: • alignment with policy priorities, deliverability, benefits and risks, and that delivery options are flexible
- 22. Slide 22 Why people matter 22 Source: PMI’ Pulse of the Profession: The High Cost of Low Performance, 2014,
- 23. Slide 23 We are developing capability at several levels 23 1. INDIVIDUAL - build competence, capability and confidence. 2. PROJECT TEAM – individual competence is critical but a complex project will not achieve success without a high- performance team. Mix of hard and soft elements 3. DEPARTMENTS – create the environment for success 4. CROSS GOVERNMENT- provide professional leadership, advocacy and focus for learning and evolution
- 25. Slide 25 UK Government and APM •40 years of co-existence •APM not at the table
- 26. Slide 26
- 27. Slide 27 How?
- 28. Slide 28 The community we serve The profession
- 29. Slide 29 Research strategy The PM Think Tank (What should happen – future) Products and services (Qualifications, events, standards, publications) Practitioners (SIGs, Branches and individual members) Corporate members (CMLG) Educational establishments (HEIs, FECs, Schools) Others (Pro Bodies, other PM orgs, general public) Profile (Press/media, APM as PM thought leaders) Global relationships (Including competitors) Gov/Industry/Education (Influencing future standards, qualifications and syllabus) Economy (Demonstrate Value of PM to economy in terms of ROI, careers/jobs) Evidence based research (What happens – current) Project success
- 30. c.21,000 individual members c.560 corporate members Engaging with c. 500,000 people online Leading member of the IPMA c.90,000 APM qualified and growing 200+ events nationally every year Educational charity Turnover £7m+ Preparing to become a chartered body About APM
- 31. 21,567 individual members 567 corporate members c.15,000 APM qualifications takers year to date Application for Chartered Status ongoing Project magazine re-launched March 2015 Refreshed APM Competence Framework Revised Practitioner Qualification Award winning association Annual conference held on March 19th APM Update
- 32. APM – keeping good company
- 33. Making it work • Major Projects Authority sets the framework • Major Projects Leadership Programme develops senior management (300 so far) • Next level down - 800 starting 2015 • APM sets the standards and provides knowledge drawn from practitioners. • Chartered status will help a bit too.
- 34. Slide 34 Today • Major Project Authority creating Project Delivery Community throughout Central Government including MoD. • Workshops formulating recommendations to Cabinet Office throughout 2015. • APM is participating.
- 35. Slide 35 Considerations April 2015 • MoD - DE&S April 1st set up as a bespoke trading entity Bechtel C2MHill Bernard Gray: until end 2015 Tony Douglas: New Civil Aviation T5 He brings a wealth of international experience and expertise in project and programme management, organisational leadership and business strategy, • Cabinet Office – Francis Maude ? Major Projects Authority ?- John Manzoni CEO CS New Head ? Current Tim Banfield Director Strategy • National Audit Office – Reforming Defence Acquisition • PAC – Public Accounts Committee – Margaret Hodge?? • Association for Project Management Chartered status • Oxford University – Said – Major Projects Leadership Academy • –SROs – Paul Chapman • Cranfield-Next tier down
- 36. Slide 36 What is my objective for this Symposium?
- 37. Slide 37 My objective for this Symposium is to bring project management into your life and organisation … in the form of … project governance and controls
- 38. Slide 38 What do you need for project management to happen? … and project governance and controls
- 39. Slide 39 I need: • To recognise that there is a problem • Proof that it works • People who can do it BUT
- 40. Slide 40 I won’t do it unless someone gives me very good reason to
- 41. Slide 41 Project management needs to become part of the culture: A combination of mindset and toolset supported by strong sponsorship AND
- 42. Slide 42 Project governance & controls TO Provide management with the right information to make timely and effective decisions
- 43. Are standards worth it? • Some are good and get used (or not) • Some are bad and get used (or not) • BS6079 Project management • PRINCE • AS4817–2006 ….
- 44. Slide 44 PMC SIG Publications
- 45. Slide 45
- 46. Slide 46 • The APM Guideline is the de facto standard for EVM in the UK • It is reciprocal with the US ANSI 748 EV standard via the Reciprocity Agreement between the APM and the NDIA
- 47. Slide 47 • The APM Guideline is linked to the APMG Syllabus • The APMG Syllabus is linked to the APMG Foundation exam • The APM Guideline is the study guide for the EV Foundation level exam • The EVM Certification Exams are available around the world
- 48. Slide 48 • The APM EVM Handbook incorporates the APM Guideline and expands the material • The APMG syllabus is linked to the EVM Handbook • The APMG syllabus is linked to the EV Practitioner exam • The EVM Handbook is the study guide for the EV Practitioner exam • The EVM Certification Exams are available around the world
- 49. Slide 49 The USA NDIA - APM Agreement • Reinforces the power of EVM as THE control method • Makes the globalization EVM easier and cheaper and possible through equivalence • Makes industry, government and the profession take EVM seriously • Reinforces that EVM is here to stay and is recognised around the world
- 50. Slide 50 BUT!!!!!!!!!!!!!!!!!!! If we want our projects to succeed
- 51. Slide 51
- 52. Slide 52 Keeping our foot on the gas •2 APM supported events (2015) EVA in the UK 20: June 16-17 - London ITER: 3-4 September - France Information: www.evaintheuk.org Contact: swprojects@blueyonder.co.uk
- 53. Slide 53 Q&A Steve Wake Chairman Association for Project Management UK
Editor's Notes
- #6: Genneral Presentation Materials
- #32: Individual and corporate numbers at record highs. Both membership packages currently under review. Also currently 55 organisations with Corporate Accreditation and 27 with Academic Accreditation. Qualification numbers for (April) 2014 – March (2015) set to be an annual record. Also c.700 Registered Project Professionals overall to date. PMI case against the Cabinet Office due for Court of Appeal later in 2015. Project magazine now a quarterly publication, with monthly digital editions as a supplement. Refreshed APM Competence Framework to be launched in May 2015. Will include most of the detail from the current framework, but consolidated into 27 competences (rather than the current 47). Will also include competence based role profiles at IPMA levels D-A to cover Project Management, Programme Management, Portfolio Management and PMO. Revised Practitioner Qualification under development. Launch planned for Autumn 2015. Likely to consist of case study based exams, rather than current assessment centre. Will initially run concurrently with current PQ. APM was winner of two awards at the inaugural Association Excellence Awards – Best UK Association and Best Association Conference in London. APM Conference was sold out event, with c.420 attendees.