2006 November Report of the Auditor General of Canada

Assessment of seven projects

3.61 Government departments and agencies should improve their internal quality reviews of IT projects. Senior departmental executives should review the key decision documents that are produced to support the IT project and ensure that the analysis is thorough and supportable before signing off on the submission.
(3.45–3.60)

The government agrees that improvement is needed in many departments and agencies. The government undertakes many significant business initiatives that are supported by information technology with varying degrees of complexity. By approaching these IT-enabled projects from a business perspective, rather than simply a technology perspective, departments and agencies will place appropriate attention on planning the project, on managing the necessary transitions, and on involving all key stakeholders.

3.89 Before seeking effective project approval, departments and agencies should prepare a business case that includes, at a minimum, precise and measurable objectives; a full analysis of options, benefits, costs, and risks; and an implementation plan.
(3.62–3.88)

The government agrees and will continue to improve the calibre and breadth of departmental business cases.

3.90 The Treasury Board Secretariat should improve the requirements for sound business cases prepared by departments and agencies to ensure that they include, at a minimum, precise and measurable objectives; a full analysis of options, benefits, costs, and risks; and an implementation plan.
(3.62–3.88)

The government agrees. The Treasury Board Secretariat has undertaken a comprehensive policy suite renewal that includes the project management policy. In this context, the Secretariat has been working with departments and agencies to address several matters related to the management of projects, including governance; risk management controls; capacity; and integration with investment planning and procurement management.

As part of this policy suite renewal, the Secretariat has been working with departments and agencies on improving the Enhanced Management Framework (which provides the supporting project management methods, processes, guidelines and tools for IT-enabled business projects) and looking at ways to share best practices. For example, significant progress has been made in the integration of outcomes management into the management of IT-enabled business projects. When fully implemented, this will enable departments and agencies to provide greater clarity around the business problem that is to be addressed, to continuously align project activities to the desired outcomes, to monitor outcomes even after the project is concluded, and to measure results. The Secretariat has completed a number of pilot projects related to outcomes management and is working towards ensuring greater understanding and use by departments.

3.98 At the start of a project, departments and agencies should clearly demonstrate that their organization is ready to accept the business transformation that comes with the project and has the capability and commitment to successfully deliver the project. Specifically, departments and agencies should analyze their track record in

• completing projects of similar size and complexity;
• completing skills appraisals and plans to address shortfalls;
• planning for business preparation, transition, and operational phases; and
• considering key stakeholder buy-in and commitment.
  (3.91–3.97)

The government agrees and will continue to work with departments in this area. The government recognizes the need for a collaborative environment where project management practitioners and executives from across government can contribute to improving the understanding and application of mature project management disciplines. The Treasury Board Secretariat will continue to work with departments and agencies to ensure that a sound community of practice is established.

3.99 Before recommending that the Treasury Board approve an IT project, the Treasury Board Secretariat should

• ensure that the departments and agencies submit their analyses of organizational capacity, and
• validate the content and approach of these assessments.
  (3.91–3.97)

The government agrees but this is a joint responsibility of the Treasury Board Secretariat and departments and agencies. The Secretariat has been actively engaged in the development of a standardized capacity assessment tool that is based on industry standards to make it easier for departments and agencies to assess their organizational capacity and for the government to validate those assessments. Where appropriate, Secretariat officials will request completed assessments from departments and conduct high-level reviews to understand the approach used by departments and to assess high-level completeness. Departmental and agency executives remain responsible for conducting the detailed analyses and creating the appropriate action plans to ensure that their organizations have the necessary skills and environment to successfully deliver their business projects.

3.111 Departments and agencies should

• comply with the Treasury Board Secretariat project management guidance,
• closely manage the project risks,
• monitor key success factors, and
• regularly report to management any significant internal or external event that may prevent the expected project benefits or result in cost overruns or in the project not being delivered on time.
  (3.100–3.110)

The government agrees. It is clear that departments are accountable for bringing forward well thought out proposals that are supported by sound business cases and achieved through well-managed projects. A number of departments are using third-party reviews to monitor their IT-enabled business projects. The Treasury Board Secretariat will undertake additional work to establish a more consistent approach to employing these reviews as part of the ongoing oversight of such projects across the Government of Canada. The government is committed to clarifying the policy instruments relating to project management and to creating the supporting environment required for success, including an indicator in the Management Accountability Framework to assess how well departments are managing their projects.