Project X

A project needs to be governed from concept all the way through to delivery – or the point at which it is terminated. So, governance should be seen as a continual process throughout the life of a project. However, there are different types of project, different elements within a project and different phases of a project. All of these should have an influence on how governance is enacted in practice. We will introduce our view on the different types of project, and the elements and phases of them. These views are not the conventional way most projects are seen, but they are helpful for the purposes of categorising our guidance.

Fixed-goal versus moving-goal projects

Within government, major projects are often categorised into four distinct types. These are: infrastructure projects, digital projects, transformational projects and MOD projects. Although this categorisation creates a set of useful descriptors, here we wish to create a categorisation that is more useful from a systems perspective. In its simplest form, we wish to distinguish between fixed-goal projects and moving-goal projects.

In the first type, the goal of the project is understood and not expected to change significantly over the course of the project. An example of this could be a piece of infrastructure, such as building a bridge with the purpose of improving traffic flow. In the second type, the goal of the project may not be fully understood and/or is expected to emerge or change over the life of the project. For these projects, it may only be possible to state the ultimate goal in general terms at the outset, and the expectation is that things will change. An example of this could be a transformational new computer system that changes the way work is delivered and users interact.

We make this distinction because the way we plan, manage and deliver these two basic project types is different. Consequently, the governance and assurance should be different too. It isn’t always easy to determine whether a fixed-goal project is really fixed, as often the devil is in the detail. Further, changes in stakeholder perception or political position may complicate what looks (at least at the outset) to be a straightforward project.

Elements of a project

Conceptually, we are proposing that a project should be divided into three elements: project delivery, project implementation and project results (outcomes and benefits).

Project delivery is focused on delivering the outputs of the project. These could be a piece of infrastructure, a software application or a piece of military equipment. They are the tangible things that the project team will create and deliver.

Project implementation is all about how the project changes what people are doing or how they do it. This will involve people using the new infrastructure, application or equipment efficiently and effectively to deliver products and services; and/or how people (including wider society) change the way they behave.

Project results refers to the outcomes and benefits achieved. Here, we use the word ‘outcomes’ to refer to all the changes that occur as a result of a project (including both the positive and the negative), while ‘benefits’ are the financial benefits less the cost of delivering them.

Project phases

Projects can be considered in phases. The ‘initial phase’ lasts from the concept or idea to approval. The ‘delivery phase’ lasts from business-case approval to the handover to those taking forward the operation following the completion of the project. The final ‘operate phase’ technically happens after the completion of the project. In reality, there is a considerable blurring between the different phases, and many projects end up being far messier than this.

Phase One

Concept to business-case approval

This critical phase of the project covers feasibility, initial appraisal, selection of approach and definition of timescales, costs and benefits:

• The concept should initially be judged on how well it aligns with government and departmental policy.
• Feasibility should look at whether the project is deliverable and outline timescales, costs and benefits.
• Initial appraisal involves refining timescales, costs and benefits, identifying alternative delivery approaches and assessing risks.
• Selection is further refinement, including identifying the preferred delivery approach.
• Definition is creating the business case for approval with the most appropriate level of detailed planning for judgements to be made on the likely success of the project and whether to proceed or not.

The governance questions that should be asked are as follows:

• Are the appropriate leadership and oversight practices in place?
• How good a fit are the proposed project approach and outcomes with government and departmental policy?
• Has the feasibility study been done to an appropriate level of detail, informed by individuals with the requisite expertise?
• Has soft analysis been undertaken and informed by individuals with the requisite expertise?
• Has a determination been made on whether this project should be classified as fixed or moving, and was the determination informed by individuals with the requisite expertise?
• Has the identification of risks been done satisfactorily, and has this work been informed by individuals with the appropriate expertise?
• Have the alternative delivery approaches been suitably identified and evaluated, and has this work been informed by individuals with the appropriate expertise?
• Has the identification of the preferred approach been justified, and has this work been informed by individuals with the appropriate expertise?
• Have stakeholder benefits been identified, and have stakeholders been appropriately consulted over the approach and the expected benefits?
• Is the business case complete, and is it appropriate for the type of project being proposed?
• Has a fully independent estimation been made of the likely scale of costs and likely benefits? Does this align with the internal estimates?

As the project progresses through the sub-phases cited above, the following questions should be asked:

• Is this project still needed?
• Can the project be justified in terms of the latest assessment of timescales, costs and benefits?
• Is this the right time to progress this project given competing priorities?
• Are the resources available to proceed?

An appropriate business case is one that matches the type of project being considered. Therefore, we expect that fixed-goal projects will have different business cases to moving-goal projects.

Recommendations

For fixed-goal projects, the focus should include:

• detailed business planning with scheduling and costing;
• risks with risk mitigation;
• uncertainties with range estimates; and
• definition of future state with clear measures of success.

For moving-goal projects, the focus should include:

• a broad business plan with ranges of timescales and costings;
• independent estimation of the scale of the costs and likely benefits;
• risks with potential risk mitigation where appropriate;
• uncertainties with range estimates;
• unknowns with discovery and learning activities and objectives;
• predefined criteria for ‘stop action’ and initiating independent review;
• phased delivery paths, possibly with intermediate deliverables and review points; and
• a description of future state with indicators of success.

Phase Two

Business case to operate

Traditionally, in the main delivery phase, the emphasis is on project delivery, but it is a mistake not to focus on project implementation and project results.

• Are the appropriate leadership and oversight practices in place for delivery?
• Are the appropriate leadership and oversight practices in place for project implementation?
• Are the appropriate leadership and oversight practices in place for delivering outcomes and benefits?
• Are the appropriate leadership and oversight practices in place for delivering outcomes and benefits in the longer term?

For fixed-goal projects:

• Are the risks being identified and managed appropriately?
• Are the uncertainties being reduced?
• Is the project being delivered in an efficient way?
• Is the project implementation being delivered effectively?
• Are the intermediate deliverables being implemented and used effectively, resulting in the expected benefits being realised?
• Are the planned outcomes and benefits still deliverable?

For moving-goal projects:

• Does the project still have clarity of purpose? Are the requirements still fully aligned to the challenges?
• Do these outcomes and benefits direct the delivery and implementation?
• Are the intermediate deliverables being implemented and used effectively, resulting in the expected benefits?
• Are the discovery and learning activities effective?
• Are the risks being identified and managed appropriately?
• Are the uncertainties being reduced?
• Is the project implementation being delivered effectively?
• Is the project delivery well managed?

Recommendations

• Governance should be determined by the type of project.
• Governance of fixed-goal projects should enable managers to take appropriate and timely decisions.
• Governance of moving-goal projects should enable managers to have the flexibility to navigate towards the current view of the ultimate goal.
• The balance between delivery, implementation and results will change over the life cycle. Assurance should evaluate whether or not this balance is appropriate for the type and stage of the project. 

Phase Three

Operate

The operate phase occurs after the project handover. So, in this phase, the focus is on using the product or service delivered by the project or exploiting the change that has occurred. The focus should also be on evaluating the outcomes and benefits, understanding how they were achieved and learning lessons from the project:

• Are the appropriate leadership and oversight practices in place for operation?
• Are the project outputs delivered in line with expectations?
• Was the handover appropriate?
• Was the operating department prepared for the project handover?
• Did the operating department embrace the project and aspire to achieve the outcomes and benefits?
• Does the operating department have mechanisms in place to guide and track the continued delivery of benefits from this project?
• What was learnt during delivery?
• What was learnt during implementation?
• What were the unintended consequences arising from the project?
• What was learnt about the delivery of outcomes and benefits?
• With hindsight, was the project worthwhile, and, if not, what should be learnt for the future?

It should be noted that fixed-goal projects are simpler to deliver than moving-goal projects. Effectiveness, in terms of the delivery of outcomes and benefits, is always the most important criterion for evaluation, but, for fixed-goal projects, efficiency is important too. If projects are moving-goal projects and the solutions have to emerge or be discovered, then the concept of efficiency has little meaning. Work on discovery or developing solutions will inevitably be wasted, so focus should be limited to asking whether money was wasted or not. These questions should not be asked with the benefit of hindsight, but from the perspective of those running the project at the time they were making the decisions they took.

Recommendations

• Evaluation should consider both the role of the project team and the role of the receiving operating unit.
• Fixed-goal projects should be evaluated on the delivery of results and the efficiency of delivery.
• Moving-goal projects should be evaluated on delivery and a final evaluation of outcomes for the costs incurred (and not on efficiency).
• Focus can be lost in operations after project delivery, so the governance and assurance mechanisms must ensure this doesn’t happen.
• Learning lessons will require the evaluation team to understand the entire process, so this should involve not only analysts, but also experienced practising project professionals.

Find out more

This article is an edited extract from APM’s newly published report Developing the Practice of Governance by M Bourne and M Parr. For more information, visit apm.org.uk/resources/find-a-resource/developing-the-practice-of-governance

---

This article is brought to you from the Winter 2019 issue of Project journal, which is free for APM members.