This NAO report (HCP 65, session 2008-09, ISBN 9780102954487), examines how well central government organisations are managing their service contracts, assessed against the good practice framework for contract management. A further examination was done into the effectiveness of the Office of Government Commerce in supporting central government to improve contract management. The NAO has focused on contracts for information and communication technology, facilities management and business process outsourcing, where the contract had been signed and the service was up and running. In the 2007-08 period, central government spent over £12 billion on service contracts primarily in the areas of information and communications technology, facilities management and business process outsourcing. In total the NAO estimates that £240 million was spent on managing service contracts in the period 2007-08. Delivery of public services, protection against service failure and achievement of value for money are all dependent on effective contract management. The NAO has set out a number of findings and recommendations, including: that contract management is not always accorded the priority it deserves; that less than half the organisations surveyed had an individual with overall responsibility for contract management; that some contracts had taken several years before a proper system of management was actually in place, including resources and performance measures; that one-quarter of comercial directors/heads of procurement rated the level of resources allocated to contract management as poor; that central government do not routinely test their service contracts and good practice risk management practices are not being consistently applied. For the Office of Government Commerce the NAO found that: limited guidance is available on contract management; that central government organisations identified a need for better training for their contract managers; that no cross-government contract management community exists and that monitoring and managing major suppliers had focused mainly on the IT sector.
This reference manual describes the PRINCE2 project management method which provides detailed guidance on how to set up, organize, manage, control and deliver your projects on time, within budget and to the right quality.
This official introduction is a gateway to ITIL. It explains the basic concept of IT Service Management (ITSM) and the place of ITIL, introducing the new lifecycle model, which puts into context all the familiar ITIL processes from the earlier books. It also serves to illuminate the background of thr new ITIL structure.This title introduces ITSM and ITIL, explains why the service lifecycle approach is best practice in today's ITSM, and makes a persuasive case for change.After showing high level process models, it takes the reader through the main principles that govern the new version: lifecycle stages, governance and decision making, then the principles behind design and deployment, and operation and optimisation.
Combining rigour and flexibility, MSP helps all organisations - public sector and private, large and small - achieve successful outcomes from their programme management time and time again. With change a pressing reality for all organisations, successful programme management has never been more vital to success. Organisations must respond as new processes or services are introduced, supplier relationships alter and structures adapt to market forces or legislation. At the same time, all organisations strive to achieve excellence by improving practices, offering better services, preparing more effectively for the future and encouraging innovation. But change always creates new challenges and risks. Inevitably there will be interdependencies to manage and conflicting priorities to resolve as the organisation adapts not just to a new situation internally but to the constantly shifting world outside.To enable organisations to manage their programmes successfully, they need a structured framework that does two things. It must acknowledge that every programme exists in its own context and demands unique interpretation. At the same time it must be universally applicable. MSP has been developed with these two priorities in mind. Its framework allows users to consistently manage a huge variety of programmes so that they deliver quality outcomes and lasting benefits. Fusing leadership with management best practice, MSP enables organisations to coordinate their key functions, develop a clear sense of unity and purpose and achieve the strategic cohesion necessary to drive through effective change
A quick reference revision guide, which has been designed to help students sitting the Foundation Exam. This edition is updated to the 2009 syllabus. The title also acts as a key reference aid for managers, practitioners, vendors and consultants in the workplace and while travelling. This publication provides an introduction to the ITIL V3 Service Lifecycle model and an overview of the ITIL V3 qualification structure. The guide contains a chapter on each of the components of the Lifecycle; Service Strategy, Service Design, Service Transition, Service Operation and Continual Service Improvement. These chapters contain an overview of each of the processes and functions in the lifecycle including value, scope, activities and metrics.
In 1999 the European Union introduced a Directive that require the UK to reduce the amount of biodegradable waste disposed of in landfill. By 2010 we have to landfill 75% of the amount landfilled in 1995. This figure reduces to 50% by 2013 and 35% by 2020. If the target is not met then the UK could be fined for non-compliance. So far DEFRA has spent £336 million on initiatives to reduce the amount of landfill, but reductions have been offset by growth in the amount of waste produced and there is a risk that the targets will not be met. An emphasis on recycling alone is not enough. DEFRA needs to focus on helping the 25 authorities that send most to landfill and help develop alternative waste facilities, as well as encouraging more households to recycle and compost. This examination of the problem is in four parts: 1) England needs to reduce the amount of biodegradable municipal waste disposed through landfill; 2) earlier delays I taking action made European Union targets more difficult to achieve; 3) without a step change in existing local authority plans, England will not achieve its share of the reductions in landfill the European Union requires by 2010 and 2013; 4) recycling and minimisation need to contribute more to reducing the amount of biodegradable municipal waste sent to landfill.
The Government set out its strategy to improve the delivery of public services through increased and better use of information technology (Cm. 6683, ISBN 0101668325) in November 2005, with the aim of ensuring services are designed around the needs of customers or citizens rather than the provider. Drawing on 24 case studies from the public and private sectors in the UK and overseas, this NAO report highlights examples of successful IT-enabled programmes and projects which have achieved tangible benefits for citizens and taxpayers and identifies good practice which can be transferred to new and existing government programmes and projects. It pinpoints three key issues in these success stories relating to: i) the degree of engagement by senior decision-makers; ii) the level of organisational understanding of what is needed to be an 'intelligent client' (in terms of having the necessary skills to negotiate effectively with suppliers and users); and iii) the importance of realising the benefits of change by determining at the outset what the desired benefits are and how the project will be managed to ensure these benefits are optimised.
The project to replace the 46 Fire and Rescue Services' local control rooms across England with nine purpose-built regional control centres linked by a new IT system has been a comprehensive failure. The Department for Communities and Local Government acted to cut its losses by terminating the contract in December 2010, seven years after it had begun, but at least £469 million will have been wasted, with no IT system delivered and eight of the nine new regional control centres remaining empty and costly to maintain. The Department tried to impose a national control system, without having sufficient mandatory powers and without properly consulting with the Fire and Rescue Services. The Department rushed the start of the project, failing to follow proper procedures. Ineffective checks and balances during initiation and early stages meant the Department committed itself to the project on the basis of broad-brush and inaccurate estimates of costs and benefits and an unrealistic delivery timetable, and agreed an inadequate contract with its IT supplier. The Department under-appreciated the project's complexity, and then mismanaged the IT contractor's performance and delivery. The Department failed to provide the necessary leadership to make the project successful, over-relying on poorly managed consultants and failing to sort out early problems with delivery by the contractor. The Department is now trying to minimise the future cost of the project by subsidising Fire and Rescue Services to use the Regional Control Centres.
Government departments have been set a series of targets for implementing efficiency gains of £21.5 billion a year by 2007-08, as part of the Treasury's Efficiency Programme following on from the Gershon Review of public sector efficiency. This NAO report finds that considerable progress has been made by departments towards achieving the efficiency targets, and the Efficiency Programme has ensured a greater focus on value for money issues among senior staff. Progress has also been made in addressing measurement issues, supported by new guidance issued by the Office of Government Commerce, although some reported efficiency gains still carry a significant risk of inaccuracy. The OGC has also initiated a new reporting system to improve the accuracy of reported efficiency gains, but this would benefit from a greater review process to assess whether they meet good practice, either through a stronger internal audit within departments or by the OGC. Departments must improve the transparency of the reporting process, and do more to encourage staff to put forward ideas for efficiency improvements. A companion volume is available separately (HCP 156-II, session 2006-07, ISBN 9780102944372) containing twelve opinion pieces on options to improve efficiency in the public sector, written by commentators from the fields of business, trade unions, academia and management consultancy.
All public sector organisations rely to varying degrees on postal services, costing nearly £650 million annually of which £250 million is spent by central government departments. The two biggest spenders are the Department for Work and Pensions and HM Revenue and Customs which account for over half this amount, with ten organisations accounting for 95 per cent of the total. Despite the growth in the use of internet and email, at least for the foreseeable future conventional mail will remain essential to the way public bodies communicate with the public. This NAO report examines how public sector organisations can become more effective in their procurement and management of postal services, and identifies six main areas where further improvements can be made in order to realise an estimated £31 million a year in savings by 2008-09. Two accompanying documents are available separately: case studies which examine the use of postal services in five organisations (HCP 946-II, ISBN 0102937354); and a guide which sets out examples of good practice across public and private sectors (HCP 946-III, ISBN 0102937362).
Service Delivery is the second element in the new ITILInfrastructure Library to be published. Service providersneed to offer business users adequate support - ServiceDelivery covers all aspects that must be taken intoconsideration. Issues covered include Service LevelManagement, Financial Management for IT Services, ITService ......
The Department for Culture, Media and Sport (DCMS) and the wide range of organisations it sponsors spend about £575 million a year buying goods and services. This NAO report examines the procurement practices used by the 25 largest organisations which are responsible for 97 per cent of the sector's procurement spend. Findings include that, whilst there are examples of good practice, procurement capabilities and practices are on the whole underdeveloped across the sector, and that better procurement practice could result in overall annual savings of £14 million by 2008-09 and double this within five years. The report sets out recommendations for ways to make further efficiencies into procurement across the sector, including improving co-ordinating how organisations work together to share knowledge and resources and to harness their buying power.
The Home Office is currently managing over 30 major projects, more than any other central civil government department, with a combined estimated lifetime cost of £15 billion. The Department has taken steps to improve its approach to project management. It established the Group Investment Board in 2003 to challenge, approve and monitor all major projects. In addition, the Department set up a centre of excellence which provides guidance and support for project managers and supports the Group Investment Board. The Home Office has strengthened oversight of projects with improved reporting on project progress. It has shown a great commitment to improving the capabilities and skills it needs to deliver these projects, developing a range of training and development initiatives to support project managers and project staff. It has led in the development of training for Senior Responsible Owners (senior staff accountable for the delivery of project benefits) and which is now available across Government. There is, however, scope for further improvements. The Home Office has not used the information it has to assess whether or not there has been an improvement in performance in delivering projects to time and budget. It also needs to improve the accuracy and consistency of its project information and to improve management of risk. The Home Office remains reliant on temporary staff and consultants who make up over 30 per cent of its major project teams.
In 2000, the Department of Trade and Industry established the Small Business Service (SBS). This report presents four aspects of its work in more detail - SBS's role in: influencing Government regulations and policies; facilitating small business access to finance; helping to join up services across Government; providing advice and support to small business. The NAO report also sets out a number of recommendations, including the following: that the current performance measurement framework could be simplified, by reviewing the Public Service Agreement objectives and targets; that an improvement in the programme of evaluations should align Government targets with small business aims and objectives; that the Small Business Service actions and activities should be supported by well documented cost-effective evidence; that the Government Action Plan for departmental co-operation should be further developed, including specific commitments from government departments on the actions they are undertaking and the resources they have committed to small business issues. The latest data, from 2003 showed that of the 3.5 million businesses in England all bar 5,400 were either small (with fewer that 50 employees) or medium-sized (with 50 to 249 employees). Small and medium sized businesses are found in all sectors of the economy, account for half of all business turnover and employ 57% of the England's private sector workforce. This report examines the SBS's performance management framework and its performance against key targets.
The £330 million New Dimension programme has enhanced the 46 English Fire and Rescue Services' capacity to respond to terrorist attacks and other catastrophic incidents such as major flooding. But better value for money could have been secured in the procurement of the specialist vehicles and equipment. The programme was introduced following the terrorist attacks of September 11 2001. It involved procuring specialist vehicles and equipment, training 10,000 fire fighters, and helping to prepare Fire and Rescue Services to tackle terrorist and other major incidents. The equipment has already been used successfully at three major incidents to date: the Buncefield fire, the 2007 summer floods, and at the Warwickshire warehouse collapse in November 2007. Funding uncertainty and poor programme, project and financial management in the early days of the project resulted in delays in introducing the equipment and significant cost overruns. A fraud of £867,200 within the programme remained undetected for 9 months and in procuring one vehicle type, for example, poor contracting and record keeping resulted in a delay of a year and unnecessary costs of between £3 and £8 million. Improvements in programme and financial management have since been made. But more still needs to be done to address weaknesses which might hamper future incident response. In particular the department need to address uncertainties over the respective roles of national co-ordinating bodies and develop a strategy for national and regional multi-agency practice exercises.
The public sector in England spends around £2 billion per year on food and catering services, including in schools, hospitals and armed forces bases. This NAO report examines how public sector organisations can improve their food procurement practices in order to reduce costs whilst maintaining the quality of meals provided. The report finds that the public sector could achieve efficiency gains of £224 million by 2010-11, with significant scope for improvement in relation to: developing market knowledge and buying practices; employing joint procurement to increase purchasing power; establishing greater transparency in contract caterers' charges; promoting the professional development of catering staff in the public sector; reducing costs and environmental impacts through efficient operational practices; and increasing the take up of meals and income generated by them. Two accompanying documents are available separately: Case studies (HCP 963-II, ISBN 0102937435) and a Good practice guide (HCP 963-III, ISBN 0102937443).
The 384 further education colleges in England spend around £1.6 billion each year on procurement services, including administration and general costs, premises costs, non-pay teaching and support services. Procurement expenditure as a percentage of total income averages 25 per cent but varies widely across colleges, with the greatest variation among small and medium-sized colleges. The Learning and Skills Council has estimated that FE colleges could make £75 million efficiency savings by March 2008 through the introduction of more efficient and effective procurement processes. Drawing on good practice guidance from the Office of Government Commerce and on expertise within the National Audit Office gained from its reports on procurement in other sectors, this report makes eight recommendations for improved procurement. The recommendations are based on five key requirements, including: the need for clear leadership from governors and senior managers in improving procurement; information about appropriate methods of procurement; and exploring opportunities to collaborate with others to gain economies of scale when buying goods or services.
This NAO report examines how the costs of building and improving roads are estimated and monitored from early forecasts through to the final cost of schemes. The Department for Transport has approved expenditure of over £11 billion between 1998 and 2021 for the development of new and existing trunk roads and motorways by the Highways Agency, and just under £1.7 billion on major road schemes proposed and developed by local authorities in five year Local Transport Plans. The report finds that robust estimating is a key factor in delivering value for money from road schemes but represents a difficult and challenging task given the timescale of major road projects and the number of potential variables, some of which are outside of the direct control of the Agency and local authorities, such as the outcomes of public inquiries and construction inflation. It recognises the work being undertaken to improve the Agency's estimating processes, and the Department's review of proposals put forward by local authorities. However, there is scope for further improvements, for example to improve the evaluation of completed schemes and examine costs against budget and the scheme's progress against timetable so that they have better information to prepare estimates, and improving how the Department and the Agency work together by better sharing of lessons learned with each other and local authorities.
The Department for Children, Schools and Families has made progress in improving its financial management, with strong commitment at senior management and board level. The Department's ability to reach a high standard of financial management depends partly on successful working with local authorities, other partner organisations, and the schools themselves. It does, however, face specific challenges, including the need for better strategic management of its large capital programme, and to encourage better financial management in schools. The Department has built up a large capital underspend, which increased from £1.9 billion at 31 March 2008 to around £2.4 billion at the end of March 2009. Its capital expenditure programme will need to be carefully managed given the history of underspending and the challenge of bringing forward £924 million of expenditure from 2010-11 to 2009-10 as part of the Government's fiscal stimulus. At March 2008, schools in England had a net cumulative surplus of £1.9 billion. Only 1 in 5 local authorities reduced their total net school surplus in 2007-08. Local authorities are accountable for school spending and the Department should encourage them to redistribute excessive uncommitted surpluses in line with local needs. The Department was, in 2007, one of three departments which had not implemented in-year accruals accounting systems, which would help to improve the accuracy of financial forecasting and reporting. The planned introduction of a shared services arrangement for finance with procurement and personnel support should also help improve financial management and lead to efficiencies.
PRINCE2 (Projects in Controlled Environments) sets out project management guidance for all types and sizes of projects, and it has become a de facto standard used extensively by the UK government as well as widely recognised throughout the private sector both in the UK and internationally. This publication explains the PRINCE2 methodology, with real-life case studies to demonstrate how it can be tailored to it the current practices and culture of any organisation.
Addresses the complex subject of managing applications from the initial business need, through the Application Management lifecycle, up to and including retirement." - page 3.
Successful business organisations need to be able to manage the process of change effectively in order to ensure that the benefits of planned projects and long-term strategies are realised. PRINCE2 (Projects in Controlled Environments) provides a structured project management framework for all types of projects, and is widely recognised by the UK government as well as throughout the private sector. This book contains best practice guidance for senior managers on how to delegate the planning and implementation of projects whilst remaining in overall strategic control, in order to successfully deliver desired business benefits.
Describes portfolio management. This guide helps you understand how portfolio management can assist in addressing the challenges you and an organization face and how to respond to the demands for more customer focused service. It explains role of portfolio management prioritizing investment decisions.
PRINCE2 (Projects in Controlled Environments) is a structured method for effective project management. This publication is a guide for those intending to take the UKAS/APM Group PRINCE2 Foundation and Practitioner examinations, and also provides advice for those taking the APM Group Practitioner Re-Registration examination. It contains examples of multiple choice questions and specimen answers to questions about typical project management situations, and supersedes the 2004 ed. (ISBN 0113309643).
Successful business organisations need to be able to manage the process of change in order to ensure that the benefits of planned projects are achieved effectively. PRINCE2 (Projects in Controlled Environments) provides a structured project management framework for all types of projects, and is widely recognised by the UK government as well as throughout the private sector. This book sets out a concise and practical guide to the PRINCE2 method for senior managers across a broad range of industries and business sectors. It presents a set of best practice processes on how to delegate the planning and implementation of projects whilst remaining in overall strategic control, in order to successfully deliver the desired business benefits.
This National Audit Office report is on assurance for major government projects, such as the introduction of large IT systems, the construction of ships and helicopters and major changes to how services are delivered. There are 205 projects in the Government Major Project Portfolio, with a combined whole-life cost of £376 billion, and annual cost of £14.6 billion. Thirty nine of those projects have a delivery confidence rating of 'red' or 'amber/red'. The report supports the changes that government has made to the central assurance system for such projects - in particular, the launch of the Major Projects Authority - and finds that they have resulted in some significant impacts. However, the system is not yet 'built to last'. Processes need to be formalised, and the Authority, HM Treasury and departments need to co-operate more if these improvements are to continue. Transparent reporting of project data would also create a more effective and enduring system. An effective central system that gives assurance over project progress is critical for ensuring successful outcomes. Capacity constraints have had an impact on the effectiveness of the assurance system. The Authority is reporting on 160 more projects as part of the portfolio and carrying out more in-depth assurance work, but has 40 per cent fewer staff than the body it replaced. As a result, processes for sharing project lessons and for continuously improving the system remain informal, and there is overdependence on key individuals in the system.
OGCbuying.solutions is an executive agency of the Office of Government Commerce and a trading fund. It was established in April 2001 to maximise the value for money obtained by government departments and other public bodies through the procurement and supply of goods and services. Its operations focus on three areas: framework agreements, managed services and memoranda of undertaking. The agency reported value for money savings of £412 million in 2005-06, an increase of 71 per cent since 2003-04. Whilst these savings are judged to be significant, this NAO report identifies considerable potential to achieve further value for money savings and makes six recommendations to help OGCbuying.solutions further improve its performance. The NAO report estimates that these changes, combined with a more co-ordinated public sector procurement landscape, could achieve a potential £520 million to £660 million in further savings.
The Ministry of Defence, one of the largest landowners in the UK, has strengthened its estate planning and achieved significant receipts from disposal of property but the changes are not yet sufficient to drive value for money for the taxpayer rigorously. While the defence estate primarily exists to support defence capabilities, the Department has not matched its focus on operational needs with enough attention to efficient use of its estate assets and to reducing costs. This report acknowledges that, between 1998 and 2008, the MOD identified and took opportunities to rationalise that part of its UK estate not needed for training, generating £3.4 billion from the sale of surplus property. Nevertheless, over the same period the Department reduced the number of civilian and military personnel three times faster than it reduced its built estate. This raises a clear question about whether there are opportunities to reduce the estate further and secure cost savings and further disposal receipts. The NAO also concludes that the Department's process for categorising sites is rightly driven by operational requirements but it does not give sufficient weight to other factors such as how heavily a site is used, running costs, or potential income from sale. The MOD also lacks sufficient data centrally to conduct the necessary analysis to help it reduce costs in a structured way. This report identified five categories of information needed to identify the scope for further estate rationalisation: operational importance; utilisation; condition; potential value; and running costs.
This NAO report (HCP 490, session 2007-08, ISBN 9780102954197), provides a progress report on the preparations for the London 2012 Olympic and Paralympic Games. There are four years still to go until the Games take place and the NAO has set out a number of conclusions and recommendations regarding progress, including and covering the following areas: (1) On programme management and risk. The Government Olympic Committee should establish that the various delivery organisations are able to maintain their programme plan and that all arrangements for achieving their goals are up-to-date; also that GOE should align its risk assessments with the overarching programme plan it is setting in place; (2) On budget management. That the assessment criteria for applications to use contingency funds should allow for spend and save use of contingency, that is spending more on one project if it can help avoid delays later in other areas. (3) On evaluation of legacy benefits. The evaluation framework should set baselines against which to measure legacy benefits and disentangle the effects of the Games from other regeneration activities; (4) On management supplier performance. The Olympic Delivery Authority should be able to show by the end of 2008 that the systems for monitoring supplier performance across all objectives are in place and operating effectively; further the Authority needs to communicate to the suppliers the importance of collaborative working and also the Authority should establish whether effective competition is being acheived by suppliers. The NAO's overall conclusion is that preparations for the Games have progressed in important ways. The construction programme is on track; good practice is evident in the way procurement is being handled; the cost estimates have been developed and a clear baseline has been set for assessing costs and progress in the delivery of the venues and associated infrastructures. For related reports, see HCP 612, session 2006-07, (ISBN 9780102947335); Cm.7216 (ISBN 9780101721622); HCP 252, session 2006-07 (ISBN 9780102944273); HCP 85, session 2007-08 (ISBN 9780215514653).
In respect of its largest defence projects there are early signs that the Ministry of Defence has begun to make realistic trade-offs between cost, time, technical requirements and the amount of equipment to be purchased. Nevertheless, the continuing variances to cost and time show the MOD needs to do consistently better. This report, which gives a progress review of the 16 largest defence projects, shows that in the last year there has been a total forecast slippage of 139 months and increase in costs of £468 million. This means that, since the projects were approved, costs have increased by £6.6 billion (around 12 per cent more than the planned cost) and the projects have been delayed by 468 months, taking almost a third longer than originally expected. It would be unrealistic to expect MOD and industry to identify every risk at the start of technically challenging projects. However, the continuing problems indicate that MOD has more to learn from historic. The MOD is accepting the capability risk and some wider costs resulting from these project delays and is having to make difficult decisions about long-term capabilities. The MOD has made a significant investment in new and upgraded helicopters to address the shortfall identified in the NAO's 2004 report. The MOD has also spent £787 million on air transport and air-to-air refuelling aircraft to support current operations and address capability gaps, such as those caused by the previously reported delays to the A400M transport aircraft. However, capability gaps remain
The procurement of public ICT equipment is forecast to increase from £2.7 billion in 2005-06 to £4.1 billion by 2010-11 (an increase in volume from 1.7 to 2.6 million units). It is therefore important that public bodies understand how they can generate value from disposals, whilst being clear about their statutory and ethical responsibilities. However best practice in this area is unclear. This report is the first attempt to identify the potential for getting value from ICT disposal, whilst considering the wider environmental costs. One of the findings is that on average the public sector keeps equipment for just under 5 years old when disposal becomes a net cost. The commercial sector typically disposes of equipment after 3 years when there is still some residual value. If this had been done by public bodies the estimated saving in 2005-06 would have been £70 million.
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