Department of Human Services
P3M3 Capability Improvement Plan
January 2014 to December 2015
TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................................................. 3
WHY WE MUST IMPROVE OUR CAPABILITY TO DELIVER CHANGE AND ACHIEVE BENEFITS ......... 6
STRATEGIC ALIGNMENT............................................................................................................................... 6
EXPECTED BENEFITS .................................................................................................................................. 7
THE P3M3 ASSESSMENT PROCESS ........................................................................................................ 8
WHAT THE P3M3 CAPABILITIES WILL LOOK LIKE ............................................................................... 10
MATURITY TARGETS ................................................................................................................................. 10
FOCUS OF CONTINUOUS IMPROVEMENT ACTIVITIES ..................................................................................... 14
HOW WE WILL GET THERE ..................................................................................................................... 18
CAPABILITY SPONSORSHIP AND MANAGEMENT ............................................................................................ 18
STAKEHOLDER ENGAGEMENT .................................................................................................................... 18
FUNDING .................................................................................................................................................. 18
OPPORTUNITIES AND CONSTRAINTS .......................................................................................................... 18
SCOPE ..................................................................................................................................................... 18
RISK MANAGEMENT .................................................................................................................................. 23
GLOSSARY OF COMMONLY USED TERMS ........................................................................................... 25
Attachment A ............................................................................................................................................ 26
Attachment B ............................................................................................................................................ 32
Attachment C ............................................................................................................................................ 33
DOCUMENT CONTROL
PURPOSE OF THIS PLAN
This document outlines the department’s plan for maintaining and improving our capability to
manage ICT-enabled change initiatives. This document forms part of the report to the Secretaries’
ICT Governance Board.
ENDORSEMENT
This document was endorsed by the DHS Executive Committee on 11 March 2014.
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EXECUTIVE SUMMARY
This Portfolio, Programme and Project Management Maturity Model (P3M3) Capability
Improvement Plan (CIP) covers the period from January 2014 – December 2015. The annual
P3M3 assessments are completed by 30 September each year, and upon further findings from
this year’s assessment, a refresh of this plan will be undertaken.
This CIP builds upon the successful outcomes of the department achieving consistent maturity
levels of 4 across all of the seven P3M3 process perspectives and the six generic attributes for
portfolio, programme and project management and aims to maintain and improve the capability
achieved in the 2012-2013 P3M3 assessment. It targets achieving a maturity level of 4 across the
board and where possible seeks stretch targets which will allow us to optimise our processes. This
is in recognition of the current fiscally constrained environment as targeting level 5 across the
board involves significantly more automation of our work and deliberate process optimisation.
Table 1 highlights the areas of focus in portfolio, programme and project management in this CIP
cycle which also responds to recommendations from the 2013 Assessment findings.
Table 1: 2014 to 2015 P3M3 targets and areas of improvement focus
Process
Model
Portfolio
Dec
Dec
Aug
June
Aug
Dec
2010 2012
2012 2013
2013 2015
Summary of key CIP focus
result Target result Target result Target
2
Programme 1
Project
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2
2
3
3
3
4
3
3
4
3
4
4
4
4
Focuses on benefits,
financial and risk
management as key
processes for stretch
targets as part of the
department’s continuous
improvement processes.
Attention will be paid to
increased use of process
metrics with Enterprise
Project Management Tool
support.
4
Continue to embed
learnings from the Service
Delivery Reform
programme into the
management of all
programmes undertaken
by the department by
strengthening the capacity
of the enabling support and
programme community.
4
Ensure that project level
processes continue to
integrate well and benefit
from the department’s
strong portfolio and
programme processes.
2014-15 DHS CIP V1.1
Department of Human Services
As shown in the table above the department has made a significant increase in maturity since the
commencement of the P3M3 process in 2010. Note that the 2010 assessment results were preintegration of the department, with the August 2012 result being the first assessment of the
integrated department. The department exceeded its 2012 and 2013 targets. The achievement is
largely credited to:

leveraging opportunities presented by the integration of the department such as the
Executive focus on driving standardisation, cultural integration and improvement at all
levels

the broader Service Delivery Reform (SDR) programme agenda and continued emphasis
on programme management excellence

significant improvement in portfolio and project management.
To maintain and stretch our targets where appropriate, the CIP seeks to continue process
standardisation and improvement, and embed good portfolio, programme and project
management processes.
Key enablers identified for achieving the set targets include:

the continued leadership provided at the portfolio level by the key governance boards such
as the Executive Committee, the Finance and Investment Committee (FIC) and the ICT
Governance Committee where risk based decision making and assurance oversight is
culturally embedded as standard operating protocol. This governance and applied
consistency continues to cascade throughout all other governance and oversight boards
and strong commitment of Senior Responsible Officials (SROs) is maintained.

continued workforce planning, recruitment and people capability strategies so that the high
resource demands and appropriately skilled resources can be supplied to meet the
resourcing requirements of new work. Meeting supply and demand with the required skills
is a critical success factor and currently a key constraint in the APS recruitment climate.

Portfolio Programme Office (PPO)’s continued attention to ensuring effective Service
Delivery Reform (SDR) and other programmes’ process improvements, lessons learned
and tools are embedded and remain strong e.g. governance, risk management and
assurance (external, internal and business design). This will strengthen the implementation
of all new programmes, such as Child Support Systems Redesign (CSSR) and Shared
Services, and support the high departmental maturity rating. Following the organisational
intent to make the SDR Programme part of the way the department does business, many
processes developed by SDR and other programmes continue to be embedded into
departmental functions as Business as Usual. For instance, the involvement of the
Executive in the management of business change is now reflected in the governance of
business change organisation wide; and the SDR benefits function is now embedded in the
CFO Division’s departmental Benefits Section and working across the department’s
portfolio of programmes and projects.

the continued operation of the former Virtual Enterprise Portfolio Office now in the form of
the CIP Working Group, made up of senior officer representation from the main Project
Management Offices (PPO, ICT PMO, SDR PMO & CSSR PMO) and organisational
process owners such as risk, finance, stakeholder, people resources, change and benefit
management. This will help to maintain consistency of operation across the department’s
portfolio of programmes and projects. The Working Group provides a sound mechanism for
ensuring there is harmonisation of processes in spite of distributed process governance and
ownership arrangement in the department.

the continued standardisation and improvement upon existing supportive frameworks and
systems and aligning them with the portfolio, programme and project management
frameworks as common practice. The ability for the PPO to continue to provide project
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management training services, communities of interest and the project specialist role that
delivers on the job advice and coaching to all programmes and projects, ensures the
operational focus, compliance with the framework standards and improved process and
tools adoption.

continue developing the capability of individuals across the relevant processes including
business change, risk and benefit management and roles including Project and Programme
Managers, Senior Responsible Officials (SROs) and Business Analysts.

strategic investment in our enterprise toolset that provides portfolio, programme and project
process metrics - a key factor in level 4 maturity rating. This is exceptional as it is
anticipated that achieving the 2015 targets will be primarily supported by the business as
usual functions identified in this plan.
Key constraints that would impact and are most likely to reduce achievement of targets include:

any further machinery of government changes where the department would undertake
integration or substantial integration with another agency or agencies: As DHS has
achieved the highest maturity rating of Commonwealth (FMA) agencies in September 2013,
other agencies integration will most likely reduce the maturity scores, as they are not as
high as DHS’ current maturity position. There may also be a requirement for increased
scope of work in the department, as evidenced by the introduction of the current shared
services arrangement that may require extended capability and capacity.

APS recruitment environment that will constrain the department from recruiting
appropriately skilled additional resources required to meet new work demands.
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WHY WE MUST IMPROVE OUR CAPABILITY TO
DELIVER CHANGE AND ACHIEVE BENEFITS
Delivering successful change in a complex organisation such as DHS can be challenging. This is
particularly so in a tight fiscal environment where the need for changes to actually deliver the
expected benefits has become more critical. Improving the capability to deliver change and
benefits does not only help the department to increase productivity and achieve its strategic goals
but it is also a government imperative considering the introduction of the new Public Governance,
Performance and Accountability Act 2013 (PGPA Act) and the outcomes from the National
Commission of Audit.
Our current ratings indicate that we obtain and retain specific management metrics on our portfolio
of programmes and projects as a means of predicting future performance. Furthermore, we
assess our capacity to manage programmes and projects and prioritise them accordingly. This
provides us with the capability to deliver significant change and effectively implement government
initiatives. Agency capability is formally taken into consideration before undertaking major ICT
projects that are either internally funded or receiving new policy proposal funding.
To enable the department to successfully manage the broad range of programmes we deliver on
behalf of Government over the term of this plan, the department will continue to build on the
existing governance mechanisms. These include supportive frameworks and systems, promoting
excellent practices from SDR and other programmes and continuing to support the individual
development of our people, in particular the role of the Senior Responsible Official (SRO).
STRATEGIC ALIGNMENT
The CIP enables the effective delivery of our portfolio of programmes and projects which is a
mechanism for achieving the department’s strategic plan. The strategic plan is focused on four
strategic themes around Government and customer outcomes, capable and engaged people, a
strong collaborative approach and service transformation.
Government and customer outcomes: The majority of new government and customer initiatives
are delivered through projects and programmes including initiatives such as Household Assistance
Package, Building Australia Future Workforce, Aged Care Reform, Service Delivery Reform
(SDR), Child Support System Redesign, Optimising Online Health Services for Healthcare and
Shared Services. Their effective delivery means capability is built within the department for
achieving positive outcomes and benefit realisation for government and customers; and improving
the efficiency and cost effectiveness of service provision.
Capable and engaged people: Having the right balance of all our roles to meet our service
delivery goals includes programme and project personnel who must be trained to deliver
outstanding service outcomes for Government and customers through the delivery of initiatives.
Strong collaborative approach: The portfolio, programme and project framework espouses
collaboration with relevant stakeholders including the community and customers, service partners
and Government agencies. The engagement of the right stakeholders at the right level is a major
contributor to successful outcomes as well as making a significant difference to benefits
realisation.
Service transformation: The innovation the department provides in delivering connected and
encompassing services to the community are often reflected in or delivered through projects and
programmes. These are the vehicles for the transformational change DHS is delivering to our
customers. Strategically the initiatives help the department to meet the evolving needs of
Government, customers and other relevant stakeholders.
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EXPECTED BENEFITS
The benefits of capability maturity improvement are drawn from a correlation between mature
processes and better outcomes. Implementing the CIP will not only see DHS continue to be a
leading department within Australian Government for portfolio, programme and project
management maturity but also help to:

maintain the Government’s confidence in the department’s ability to deliver large and
complex service delivery and ICT reforms efficiently and effectively

ensure on-time, on budget delivery performance and outcomes of projects and programmes
in accordance with the department’s budget statements. This is especially important in the
context of achieving savings by on-time delivery of the expected outcomes for government.

ensure the department maintains adequate risk management and assurance oversight with
increasing significant and complex changes so there are no adverse outcomes for
government or customers

ensure portfolio resource allocation decisions direct resources to those initiatives with the
highest priority


ensure increased benefits are realised from programmes of ICT enabled change
ensure increased in portfolio, programme and project management capability and
experience as well as effective engagement of policy agencies.
Ultimately, there are efficiency and effectiveness benefits to be achieved on a whole of
government basis from improved capability.
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THE P3M3 ASSESSMENT PROCESS
The Department of Human Services (DHS) engaged KPMG, an accredited P3M3 consultancy
service provider who partnered with the PPO staff to undertake the P3M3 assessment in August
2013. This ensured that DHS had full visibility and understanding of the processes used, and
ownership of the outcomes. It also meant that DHS could access the consultants’ expertise to
build capability and ensure independent validation of the results. Table 2 itemises the maturity
rating achieved in 2012-13 assessment.
Table 2: P3M3 Assessment Report (Ratings achieved in August 2013)
Process models
Portfolio Programme Project
OVERALL ASSESSMENT
4
4
4
Process
Organisational Governance
perspectives
Management Control
4
4
4
4
4
4
Stakeholder Engagement
4
4
4
Benefits Management
4
4
4
Financial Management
4
4
4
Resource Management
4
4
4
Risk Management
4
4
4
Roles and Responsibilities
4
4
4
Experience in Portfolio, Programme & Project
Management (P3M)
4
4
4
Capability Development
4
4
4
Planning and Estimating Process
4
4
4
Information and Documentation
4
4
4
Scrutiny and Review
4
4
4
Generic
Attributes
The P3M3 Assessment Report is the second DHS-wide P3M3 assessment encompassing the
master programmes of Centrelink, Medicare and Child Support. The report notes that the
consistent 2012/13 score of four across portfolio, programme and project, positions DHS in the top
few Commonwealth agencies to have reached that level of maturity.
The report also notes that the level of maturity achieved is a result of continued focus and
investment across DHS which can be summarised within three main themes:
1. a significant improvement in portfolio management in areas including financial management,
business change management and cross government stakeholder engagement
2. continued emphasis on programme delivery excellence
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3. a significant improvement in project management resulting from a structured focus on project
management frameworks, consistency of implementation and capability development across
DHS.
The report continues on to state that the assessment is a significant achievement for the
department and positions DHS as a pre-eminent implementer for government. This level of
maturity is a high watermark and DHS will need to continue to invest and maintain a focus on
portfolio, programme and project management capability in order to maintain this level of maturity
over the coming 12 to 24 months.
The detailed observations from the report have been incorporated into this plan.
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WHAT THE P3M3 CAPABILITIES WILL LOOK LIKE
MATURITY TARGETS
Table 3 below identifies the individual process and attribute targets for this plan. The targets
maintain the maturity ratings achieved in the 2013 assessment and seek to stretch where
possible. The department recognises that maintaining the current level 4 maturity ratings and
stretching for 5 ratings will require a continued focus and commitment from the organisation.
Specific and generic attributes required for these ratings can be found at Attachment A.
Table 3: Target maturity ratings
Process models
Portfolio
Programme Project Portfolio
December 2014
Programme Project
December 2015
OVERALL ASSESSMENT
4
4
4
4
4
4
Process
perspectives
Organisational
Governance
4
4
4
4
4
4
Management
Control
4
4
4
4
4
4
Stakeholder
Engagement
4
4
4
5
4
4
Benefits
Management
4
4
4
5
4
4
Financial
Management
4
4
4
5
5
5
Resource
Management
4
4
4
4
4
4
Risk
Management
4
4
4
5
5
5
Roles and
Responsibilities
4
4
4
4
4
4
Experience in
P3M
4
4
4
4
4
4
Capability
Development
4
4
4
4
4
4
Planning and
Estimating
Process
4
4
4
4
4
4
Information and
Documentation
4
4
4
4
4
4
Scrutiny and
Review
4
4
4
4
4
4
Generic
Attributes
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The P3M3 report notes that in some areas stretching towards a higher rating could be considered
and where possible efforts will be applied to do so, particularly in the areas of financial and risk
management. However, at this stage, as also recommended in the report, the department will
focus on maintaining and stabilising the consistent level 4 ratings. The fundamental design of the
portfolio, programme and project management capabilities developed during the previous CIP will
be maintained in the first year and stretched in the second year.
PORTFOLIO MANAGEMENT
DHS is a large organisation and has a broad range of portfolio functions that together serve to
form the key ‘office’ functions required to support portfolio management. The PPO will continue to
work closely with the Chief Financial Officer (CFO) and Information and Communication
Technology (ICT), as well as key functions that maintain supportive frameworks including risk
management, benefits management, people capability, governance and stakeholder management.
This CIP Working Group supports a range of committees and governance mechanisms. The
existing portfolio governance bodies comprising of the Executive Committee (EC), Finance and
Investment Committee (FIC), and the ICT Governance Committee will continue to be the primary
governance committees.
A coordinated approach to streamlining points of integration of portfolio, programme and project
processes is a key element in sustaining the current maturity level. The CIP Working Group will
continue to actively collaborate to improve processes that support the delivery of the department’s
portfolio of programmes and projects.
The recent P3M3 report summarises the level of maturity achieved through the following
examples:
 over two years following the integration of the major master programmes, the DHS portfolio
governance bodies comprising of the Executive Committee (EC), Finance & Investment
Committee (FIC) and ICT Governance Committee are operating at a strong level of maturity
and effectiveness. They ensure that the ICT change portfolio is effectively directed and
prioritised according to numerous factors including mandatory requirements, strategic
alignment, risk management and capacity planning.
 The FIC ensures tight financial management across the portfolio, including initial costing
analysis, fully costed business case approval and approval and management of discretionary
projects.
 there are enhanced cross departmental processes and practices for engagement with portfolio
departments and central agencies. This positions DHS to positively impact and support
Government priorities.
 DHS has established a Change Command Centre and Change Front Door capability to assist
with the assessment of impact on business as usual prior to the introduction of initiatives into
the business. This capability assists with ongoing change management as new/enhanced
functionality is delivered into business as usual.
 DHS has established consistent reporting and control mechanisms across its programmes and
projects including metrics which are providing a means for predicting future performance. This
reporting and control is facilitated by PPO and the ICT Portfolio Management Office (ICT PMO).
 DHS has established sound mechanisms to support resource management including capacity
and capability planning for both business and ICT.
 DHS has its own centrally controlled portfolio, programme and project management processes.
Programmes and projects can flex within these processes to suit the context. Clear
accountability exists for realising portfolio benefits and there is strong linkage between business
operations and business benefits realised from the portfolio.
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Note: For more information on the design of the portfolio management functions refer to the
Portfolio Management Framework located on the Portfolio Programme Office intranet site. (see
Attachment B: Portfolio at a Glance)
PROGRAMME MANAGEMENT
The SDR Programme has heavily influenced the development of the department’s Programme
Management Framework and the achievement of the current levels. The investment in SDR has
required a significant focus on programme management to achieve significant savings and
benefits. SDR is becoming ‘business as usual’ and supports other programme management
capability building more broadly. Naturally this will require tailoring the framework to programmes
of varying size and complexity, examples of which already exist within the department.
The experience of key individuals in managing large programmes is a critical consideration in
embedding programme management. A concentrated focus on organisational and individual
capability improvement is a key element in sustaining the current maturity level.
The recent P3M3 report summarises the level of maturity achieved through the following
examples:
 major strategic change initiatives including SDR, Household Assistance Package (HAP) and
Aged Care Reform are being run as strategic change programmes. These initiatives utilise
centrally controlled and sound programme management processes, principles and governance
arrangements, including benefits management and change management disciplines.
 both the PPO and the ICT PMO have invested significant resources into skilling and supporting
programme managers and business change managers. This was evident from the interviews
conducted. This investment has enabled the achievement of a fairly strong level 4 maturity
rating with all of the generic attributes rated at level 4.
 a resource pool of trained and experienced programme managers and business change
managers is clearly being developed by DHS to support current and future programmes.
 programme managers monitor costs and expenditure in accordance with clear guidelines,
procedures and tolerances. This is a process which is underpinned by regular monitoring of
programme financial performance and business cases as they evolve through the programme
lifecycle.
 a culture of continuous improvement is being cultivated within DHS through the effective use of
project specialists to coach and support sensible application at the project and programme
levels. This is coupled with the effective use of “lessons learned” as a mechanism for sharing
organisational experience and improving individual and business performance.
 there is a clear and consistently applied accountability model for Programme Management
which includes individual accountability for delivery and benefits realisation with clear hand offs
and linkages between programme and business as usual.
Note: For more information on the design of the programme management functions refer to the
Programme Management Framework located on the Portfolio Programme Office intranet site.
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PROJECT MANAGEMENT
The department has integrated three agency project frameworks into a single framework. The
framework provides consistent ‘language’ and structure for all projects. In addition the department
has also extended this common framework with ICT specific extensions that integrate into the ICT
systems development lifecycle. The most recent cycle has focused on simplification and
streamlining the framework with a particular focus on removing duplication.
Again, the experience of project managers is a critical consideration. A concentrated focus on
organisational and individual capability improvement is a key element in sustaining the current
maturity level.
The P3M3 assessment report observes that project management is the area that has benefited
from the greatest improvement in maturity over the last 12 months with all seven process
perspectives moving from 3 to 4. The report attributes this improvement to three main areas.
1. There has been direct investment in project management learning and development and
practice management. We note that across all of the P3M3 interviewees there was an evident
uplift in project capability compared to prior years.
2. In its second year of operation, the DHS Portfolio Programme Office has significantly matured
and is having a direct impact on project management practices, consistent application of
organisational standards and generally lifting the standard of project management across DHS.
For example:

centrally controlled project management processes and techniques are being used to
effectively manage the delivery of new or enhanced capability.

sound project governance arrangements are being applied consistently, often within the
boundaries of a larger change programme.

a resource pool of trained and experienced project managers is being developed by DHS to
support current and future projects. This is supported by a focus on ongoing development
for individuals in specific roles and the creation of forums to share organisational
experience, lessons learned and knowledge across projects.
3. The improvement in portfolio management is also having a positive impact on project
management practices as the DHS senior executive begin to set higher Departmental
expectations on projects and project managers.
Note: For more information on the design of the Project Management functions refer to the Project
Management Framework located on the Portfolio Programme Office intranet site.
PORTFOLIO, PROGRAMME AND PROJECT CAPABILITY GOVERNANCE
The PPO provides a central point of co-ordination of the P3M3 process. As noted under portfolio
management, the CIP Working Group has responsibility for oversighting the development and
implementation of the CIP. As key stakeholders and subject matter experts of various components
within the P3M3 model, the CIP implementation benefits from continued sponsorship, ownership
and management of interdependencies with respect to capability improvement. The terms of
reference for the CIP Working Group is at Attachment C.
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FOCUS OF CONTINUOUS IMPROVEMENT ACTIVITIES
The following table summarises how the department envisages each element within the P3M3
model will evolve over the period of this CIP. As stated, the focus of the changes relate primarily to
maintaining and stabilising current maturity levels. Areas for specific improvement are based on
the observations in the P3M3 assessment report and internal consultation.
Table 4: Focus of improvement activities for Jan 2014 – Dec 2015
Process
Organisational
Governance
Management
Control
Stakeholder
Engagement
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Portfolio Programme Project
4
4
5
4
4
4
4
Focus of maintenance activities and opportunities to
improve
The governance that has been established at the
portfolio level and the implementation of programme
governance according to the framework is a key
enabler to maintaining executive involvement and
commitment. The CIP Working Group is collectively a
key driver for ensuring that appropriate governance
continues to be put in place as new initiatives are
commenced. Opportunities to enhance the integrated
reporting and metrics to inform executive decisions will
further improve maturity and rating of this process.
There is a high demand for metrics and trend analysis
to continue to be aggregated by programmes and the
portfolio. The department expends considerable effort
in monitoring activities in order to achieve this high
level of maturity.
4
There is a very high level of executive engagement in
P3M. Using programmes to group key change projects
simplifies the portfolio view. Improvement to and
integration of tools will enable the department to have
greater visibility, consistency, accuracy and agility.
Further maintaining knowledge management by
utilising centralised tools in key areas will have maturity
gains for the department. Where opportunities exist,
effort will be applied to further tighten this capture of
intelligence and to embed supportive frameworks into
the P3M frameworks.
4
Stakeholder engagement is a complex task within the
department as change initiative often cut across two
and three Groups unlike other agencies. Organisational
stakeholder engagement capability will continue to be
well integrated with P3M. The departmental
stakeholder management function is represented on
the CIP Working Group to further strengthen the
integration with portfolio management practices and
increase the sophistication of analysis and modelling.
Where opportunities exist, capturing and measuring
effectiveness of the stakeholder engagement and their
influence will be sought or considered to be built into
P3M practices or templates, such as the Post
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Process
Benefits
Management
Financial
Management
Resource
Management
PAGE 15 OF 34
Portfolio Programme Project
5
5
4
4
5
4
Focus of maintenance activities and opportunities to
improve
Implementation Review. This will support a stretch
target of 5 at the portfolio level. The department will
continue to maintain current mechanisms for engaging
and evaluating stakeholder engagement including
customer satisfaction surveys, mechanisms outlined in
business agreements with other federal agencies and
state and territories agencies and annual surveys of
senior executive in key federal partner agencies.
4
Maintaining the maturity involves continuing the
practice of aggregating projects with significant
benefits (in particular savings) into programme
structures to ensure information availability and
consistency to support trend measurement and
analysis. There will be continued effort to capture and
measure all identified benefits from initiatives in flight.
This will enhance monitoring of their realisation and
fine tuning of indicators if required. Additionally, the
departments Benefits Framework, Policy and tools will
be further promoted and targeted training delivered to
embed benefit management practices. The Benefits
Team will work alongside the PPO to embrace
opportunities for supporting P3M3 with Benefits
Framework and review processes where capture of
lessons learned can be enhanced and fed back for
continuous improvement.
5
Improvement and integration of tools will enable the
department to have greater visibility, accuracy and
agility. This will allow for greater proactive portfolio
control and prioritisation of individual projects by
consistent application and analysis of initiatives data.
Leveraging from maturity gained and application of
consistent tools creates opportunity to establish
measures to track costs and impact of realised benefits
on the business. The use of the earned value concept
will enhance performance monitoring.
4
DHS has sound mechanisms to support resource
management including capacity and capability planning
for both business and ICT Improvement. Integration of
tools will enable the department to have greater
visibility, accuracy and agility. This will contribute to
more effective portfolio planning for the medium to
long term investment horizon. Expansion and
exploitation of work undertaken by Business Change
Managers will be considered. Extraction plans for
individuals leaving programmes or projects will support
the continuous improvement process. There is an
opportunity for resource capability improvement
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Process
Risk
Management
Portfolio Programme Project
5
5
Focus of maintenance activities and opportunities to
improve
through improved work design, information
management and improved processing systems.
5
Risk management as a corporate process is embedded
at all levels of management. Risk aggregation and
analysis at programme and portfolio can be further
enabled by including expertise of risk specialists and
building this capability. Consideration will be given to
how cost effectiveness of response measures are
demonstrated across all programmes and projects
consistently. Targeted risk training and assistance to be
applied to ensure risks are actively owned and are
consistent with realistic definition to risk responses.
Roles and
Responsibilities
4
4
4
The department has approached P3M3 with a view to
integrating roles and responsibilities into the existing
structures within the department. Hence there is a high
level of executive engagement and involvement. The
assessment noted that the department is large and can
largely ‘self-insure’ with respect to succession planning.
Active development of interested and/or high
performing project managers into the more complex
skills of programme management is expected to
develop further.
Experience in
P3M
4
4
4
The maturity differentiator for the department is
maintaining the culture of individual performance
against defined key performance indicators.
4
Maintaining and growing the pool of individuals with
the capability and skills to implement change is a core
enabler. The PPO in conjunction with the ICT PMO,
Workforce Planning and Learning and Development
Branches will continue to run mentoring, training and
communities of practice. Embedding P3M roles within
the department is a key goal during this CIP. This will
contribute towards making P3M capability building an
integral part of the organisational functions involved in
P3M.
4
The department expends considerable effort in
planning activities in order to achieve this high level of
maturity. Improvement and integration of tools will
enable the department to have greater visibility,
accuracy and agility.
4
The department expends considerable effort in
information management activities and aims to further
develop trend analysis to identify improvement
opportunities and decision making effectiveness.
Improvement and integration of tools will enable the
department to have greater visibility, accuracy and
Capability
Development
Planning and
Estimating
Information and
Documentation
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4
4
4
4
4
4
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Department of Human Services
Process
Scrutiny and
Review
PAGE 17 OF 34
Portfolio Programme Project
4
4
4
Focus of maintenance activities and opportunities to
improve
agility.
The majority of review activity is aimed at individual
programmes and projects. Portfolio review activity also
encompasses a broader scope and looks for
opportunities across programmes. Enhancing lessons
learned processes and capture for dissemination will be
reviewed and identified opportunities will be
implemented.
2014-15 DHS CIP V1.1
Department of Human Services
HOW WE WILL GET THERE
CAPABILITY SPONSORSHIP AND MANAGEMENT
The sponsoring group for this plan is the DHS Executive Committee. The Senior Responsible
Official is the Chief Financial Officer (observer at EC and a member of FIC). The P3M3
Capability Improvement Plan is one of the key strategic deliverables in the Portfolio Programme
Office business plan, as part of the CFOs division. The National Manager, PPO will co-ordinate
the governance committee and reference groups that will be responsible for implementing
elements of the plan, and who will also collectively develop the plan for the next CIP cycle.
STAKEHOLDER ENGAGEMENT
The PPO will continue to work closely with CFO and ICT, as well as key functions such as Risk,
Benefits, People Capability, Governance, Service Strategy and Policy, Strategic Information
Division and Service Delivery Reform. The CIP Working Group is the core governance group for
the implementation of the P3M3 Capability plan.
The CIP Working Group will further engage stakeholders, such as the broader project
management community, via existing networks and forums and in specific working groups as
required. Updates to the frameworks and tools will be coordinated and supported by relevant
communication and training programmes. The PPO is the point of contact for the Australian
Government Information Management Office (AGIMO) with respect to the P3M3 process and
capability improvement plan.
FUNDING
The deliverables and activities outlined in this plan are primarily funded out of the business as
usual office functions. There are also some initiatives that require additional investment.
This plan also relies on the SDR Programme contributing to the programme framework guidance
and to provide active leadership and mentoring to the next set of programme leaders and
managers outside of the SDR Programme. The SDR Programme continues over the timeframe of
the next capability improvement cycle, and therefore will continue to directly support the
maintenance of the programme maturity level in particular.
OPPORTUNITIES AND CONTRAINTS
DHS has continued to increase its P3M3 rating since its integration into a core department in
2011. Any future machinery of government changes or significant impacts from the National
Commission of Audit may possibly impact the department’s maturity rating as a result of significant
organisational changes.
SCOPE
This plan has been developed based on the maturity objectives of the department and the analysis
of the last P3M3 assessment. The plan will be reviewed and updated with activities based on the
outcomes of the next P3M3 review and the progress of the initiatives identified.
The key themes to maintain and drive further improvement are to:

continue to streamline functions and frameworks to make processes simpler for people and
remove duplication. This incorporates embedding supportive frameworks into the P3M3
frameworks

implement better and more integrated tools to improve information availability and accuracy

deliver training to develop people with capability in portfolio, programme and project
management

further integrate portfolio and programme reporting and enhance metrics to further support
evidence based performance and decisions
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2014-15 DHS CIP V1.1
Department of Human Services

increased workforce planning with key project and programme skills to enhance and
transition key core skills from SDR into the PPO as support services

revisit and enhance continuous improvement activities, such as lessons learned to build
upon knowledge management in centralised management offices of DHS such as PPO and
the benefits, risk and financial management process areas

focus efforts to expand the Business Change Managers capabilities across the department

further embed benefits management practice across the department through targeted
training now the policy, framework and tools are available for use.
The plan will also ensure that the P3M3 capability improvement aligns with other relevant business
as usual activity and the action plan developed in response to the National Commission of Audit
and impacts of the Public Governance, Performance and Accountability Act 2013.
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2014-15 DHS CIP V1.1
Department of Human Services
Table 5: Key improvement initiatives for 2014-15
LEGEND
Process Perspectives
1 - Organisational Governance
5 - Risk Management
2 - Management Control
6 - Resource Management
Generic Attributes
8 - Roles and Responsibilities
11 - Planning & Estimating Processes
9 - Experience in Project/
12 - Information Documentation
Programme Management
10 - Capability Development
13 - Scrutiny & Review
3 - Benefits Management
7 - Stakeholder Management
4 - Financial Management
*Reference numbers in the table relate to the above legend of process perspectives and generic attributes
Ref.
Based on 2012-13 Assessment
Recommendation
Further consolidate and integrate
ideas into strategic plan
Portfolio selection should not only
be based on finance but consider,
strategic goals, existing and
upcoming initiatives and trend data
of business performance
Analyse, coordinate and manage
impact of change
Activity
Dec 2014
Dec 2015
Review Strategic Planning
31 Aug
√
Support FIC with project definition and use of
project and business performance metrics
√
Streamline governance arrangements around
change management
31 Apr
3
Manage dependencies between
benefits
30
June
3
Track negative and positive effects
on the business - Increase
identification and management of
dis-benefits
Link benefits to business metrics
Improve portfolio benefits register and
identify clear roles between the PPO and
Change and Project Coordination branches
to assist in embedding the benefits
framework and tools
Support staff with benefit identification and
management through lifecycle of the benefit
Support staff with benefit identification linked
to organisational KPIs.
30 June
1
1& 4
1
3
√
Support staff with information on the impact
of on-time delivery on benefits (e.g. savings)
in keeping with expected government
outcomes.
Progress work on information assets register
to improve data stewardship
3
Tighten non-financial benefits
6
Build Business Change Managers
2
Develop blueprinting skills
2
3
Build business configuration
management of assets
Build benefit management skills
5
8
Build risk expertise
Build Programme Managers and
PAGE 20 OF 34
√
Improve benefits framework continually and
work with Change and Project Coordination
for handling and embedding non-financial
benefits management
Ongoing enhancement of the PPO assurance
role in support of a robust outcomes
framework
Conduct targeted Business Change Manager
Training
Conduct targeted training and support for
blueprinting process. Refine or develop core
service offer for blueprinting
Conduct targeted training on ARIS to support
configuration management
Conduct targeted benefit management
training
Conduct targeted risk management training
Conduct targeted programme management
30
Apr
√
√
√
√
31 Aug
√
2014-15 DHS CIP V1.1
Department of Human Services
Ref.
10
2, 8
&6
2
2
3
7
1
2
4
1
4
12
6
6
4
4
4&
11
2
1
13
5
5
5
5
2
2
Based on 2012-13 Assessment
Recommendation
Business Analysts (BA)
Build Senior Responsible Officials
Develop succession and extraction
plans for staff retention and lessons
respectively
Activity
Embed capacity planning
Analyse data to justify resource
pooling as a mechanism for
capacity and capability monitoring
Improve Post Implementation
Reviews (PIRS) focus on benefits
Provide annual workforce planning support
Conduct annual workforce planning
30 Jun
30 Jun
Continue framework improvement e.g.
inclusion of agile methodology, benefits, SDR
lessons, PIRs etc.
Improve framework with stakeholder roles
√
Reflect project brief in framework
√
Use existing tools and continue to rationalise
them
Continue process improvement
Revisit programme reporting to identify
impact of projects on business performance
post implementation
Improve budget allocation and reporting
√
Strengthen Group Dashboards and Executive
Dashboard with improved reporting of data
√
Clarify the role of stakeholders with
high authority not on boards
Improve framework with Project
Brief
Support planning and monitoring
with Enterprise PM Tool
Earned Value Reporting
Reporting on business impact of
projects
Tracking & report on-cost of
benefits
Use trend analysis to support
decisions, proactive management of
risk and continuous improvement
Track resource availability and
utilisation
Performance assessment based on
initiative performance
Integrated BAU and P3 financial
controls
Base financial decision on actual
and robust forecast data
Use trend data and lessons to
improve costing
Centralise knowledge management
function
Improve knowledge management in
support of continuous improvement
Implement sophisticated information
distribution
Continued alignment between BAU
and project Risk framework and
ownership
Consider opportunity risk
Use of risk modelling and
simulations
Identify budgetary impact and cost
effectiveness of risk response
Use independent expertise on
appropriate boards
Centralise and improve assurance
function with tightened project
review, this includes development
PAGE 21 OF 34
Dec 2014
and BA training
Conduct SRO briefing
Strengthen succession and extraction
planning in line with suggestions on
appropriate governance changes to enable
the PPO to actively manage the project and
programme capabilities within the
department.
Dec 2015
√
√
√
√
√
√
√
√
Continue status reporting
√
Provide performance assessment guidance
through the framework
Ongoing organisation-centric support and
reporting processes
Regular financial reporting
√
√
Enhancement to costing process via TM1
30 Apr
Improve PPO’s portfolio knowledge
management function
Redefine business processes & strategy for
knowledge management
Establish knowledge sharing mechanisms
including stronger use of WIKI
Continue framework improvements
√
Continue project risk support/workshops
Conduct targeted risk management
education and training
Continue project risk reporting and benefits
tracking
Revisit governance framework for
programmes and projects
Revisit assurance framework and strengthen
implementation
√
31 Aug
√
√
√
√
√
√
√
30 June
√
√
√
2014-15 DHS CIP V1.1
Department of Human Services
Ref.
2
7
7
Based on 2012-13 Assessment
Recommendation
of specialists for projects to refer to
when required.
Implement mature board operations
broadly
Centrally maintain stakeholder
information
Measure stakeholder engagement
effectiveness
PAGE 22 OF 34
Activity
Dec 2014
Dec 2015
Implement project earned autonomy and
continue strong ICT Top Ten project
governance
Develop central hub of stakeholder
information
Capture stakeholder engagement
effectiveness via success criteria within
project plans and PIRs and annual customer
surveys
√
√
30 Apr
√
2014-15 DHS CIP V1.1
Department of Human Services
RISK MANAGEMENT
The department has a strategic risk to manage with respect to on-time, on-budget delivery of
Government initiatives. The P3M3 Capability Improvement activities are a direct treatment for this
risk. With respect to this CIP the following key risks are highlighted.
Risk statement
Current
Rating
If the current P3M3
Medium
maturity ratings are not (Likely,
maintained then this
Moderate)
may impact the
department’s ability
(real or perceived) to
deliver on Government
initiatives and the
current reform agenda
Residual
Rating
Treatment(s)
The scope of this plan is primarily based on the Medium
continuation of activities commenced in the
(Possible,
previous capability cycle, and activities
Moderate)
identified in process areas business plans.
Effort will be applied if gaps are identified
which could threat maturity rating decline.
The CIP Working Group provides governance
oversight as well as enable key stakeholders to
be engaged.
Continuation of explicit support from the SDR
Programme Office will allow for the transition of
experience into the frameworks and to key
individuals.
If further machinery of
government changes
where the department
would undertake
integration or
substantial integration
with another agency or
agencies, considering
DHS has achieved the
highest maturity rating
of Commonwealth
(FMA) agencies in
September 2013, then
other agencies
integrating will most
likely reduce the
maturity scores, as
they are not as high as
DHS’ current maturity
position. There may
also be increased
scope of work or ‘new’
functions such as the
shared services
arrangement.
PAGE 23 OF 34
Medium
Explore opportunities for using best of breed
Medium
approaches to identify and implement best
(Likely,
(Possible,
practices
from
the
agencies
involved
to
ensure
Moderate)
Moderate)
overall capability of any such new organisation.
Continued unwavering executive leadership
commitment to use the P3 disciplines to deliver
on ambitious Government reform agenda.
Explore opportunities to share DHS’s current
capability to bring other parts of the APS in
line.
Continued development of the required
capability to sustain the delivery of ‘new’
functions such as modifications to the current
shared services arrangement or any other
future arrangements.
2014-15 DHS CIP V1.1
Department of Human Services
Risk statement
Current
Rating
Residual
Rating
Treatment(s)
If additional
Medium
investments are not
(Likely,
funded such as in tool Moderate)
and process
improvements then
this may impact the
department’s ability to
reach the stretch
targets identified in this
plan
Explore opportunities to co-invest from current
business as usual budgets.
If the development and Medium
implementation of the
(Likely,
CIP does not allow
Moderate)
sufficient time before
the next P3M3
assessment then
embedding of
improved processes
and quality of
deliverables could be
impacted
Ensure the CIP is registered as a project in the
PPO so adequate priority and resourcing is
made available to implement the CIP.
Be clear with stakeholders that the stretch
targets are contingent upon appropriate
investment. The level of organisational
capability and investment required is significant
(in training, education, mentoring, process
improvement, systems, induction, user
communities etc.).
Low
(Possible,
Minor)
Low
(Possible,
Minor)
Attention and importance of the CIP with
stakeholders is sought as they influence their
business processes/counterparts to complete
their responsibilities on time and with quality.
Continued communication of the CIP and
progress with the project and programme
community is evident and has strong presence
of outcomes achieved or desired.
If the P3 community is
not adequately
engaged then there
will be a diminished
ability to achieve the
set targets
Medium
Ensure adequate Executive engagement and
appropriate communication and support occurs
(Likely,
Moderate) with project and programme community in
DHS.
Low
If highly regarded and
project management
accredited DHS staff
leave the department
due to the current APS
recruitment climate,
then capacity to
implement
Government initiatives
will be impacted
Medium
Low
Ensure DHS continues programmes that
attract and retain high performing staff. There
(Likely,
Moderate) is a recruitment and retention strategy required
to help retain Project Managers and Business
Analysts.
(Possible,
Minor)
(Possible,
Minor)
Improved training and skills development
across the department, and inclusion of such in
workforce plans.
The department also notes that there is a current initiative by the UK Office of Government
Commerce to make revisions to the P3M3 model. A watching brief will be maintained for any
changes and flow-on impacts to the CIP.
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Department of Human Services
GLOSSARY OF COMMONLY USED TERMS
Benefit – the measurable improvement resulting from an outcome perceived as an advantage by
one or more stakeholders.
P3M3® - Portfolio, Programme and Project Management Maturity Model - agencies subject to the
Financial Management and Accountability Act 1997 are implementing the P3M3 as a common
methodology for assessing their organisational capability to commission, manage and realise
benefits from ICT-enabled investments. P3M3 is owned by the Office of Government Commerce
(OGC), now part of the new Efficiency and Reform Group within the Cabinet Office within the UK
Government with a remit to help public sector organisations improve their efficiency, gain better
value for money from procurements and deliver improved success from programmes and projects.
Portfolio - the totality of the Human Services organisation’s investment (or segment thereof) in the
changes required to achieve its benefits and savings.
Portfolio Management - a co-ordinated collection of strategic processes and decisions that
together enable the most effective balance of organisational change and business as usual.
Programme - a temporary, flexible organisation created to co-ordinate, direct and oversee the
implementation of a set of related projects and activities in order to deliver outcomes and benefits
related to strategic objectives.
Programme Management - the action of carrying out the coordinated organisation, direction and
implementation of a dossier of projects and transformation activities to achieve outcomes and
realise benefits that are of strategic importance to the business.
Project - a temporary organisation, usually existing for a much shorter time, which will deliver one
or more outputs in accordance with a specific Business Case. A particular project may or may not
be part of a programme.
Project Management - Project Management guides a project through a visible set of activities,
from controlled start-up, through delivery, to controlled closure, and review.
Blueprint – a model of the organisation, its working practices and processes, the information it
requires and the technology that supports its operations.
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Department of Human Services
Attachment A
2014-15 DHS CIP V1.1
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Department of Human Services
2014-15 DHS CIP V1.1
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Department of Human Services
2014-15 DHS CIP V1.1
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Department of Human Services
2014-15 DHS CIP V1.1
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Department of Human Services
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2014-15 DHS CIP V1.1
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Department of Human Services
Attachment B
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2014-15 DHS CIP V1.1
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Attachment C
Terms of Reference
P3M3 CIP Working Group
Chair:
National Manager, Portfolio Programme Office
Establishment Date:
17 January 2014
Committee Manager:
Director, Capability Development and Framework
Reporting Line:
Chief Financial Officer
Purpose:
Support the DHS Executive Committee by overseeing the development and implementation of the DHS
Capability Improvement Plan to ensure the department maintains its position in the top few Commonwealth
agencies to have reached very high maturity levels.
Background:
The Department of Finance’s ICT Reform Agency Capability Initiative requires all agencies subject to the
Financial Management and Accountability Act 1997 (FMA Act Agencies) to conduct a formal P3M3
evaluation and develop capability improvement plans annually. The outcomes are reported to the
Department of Finance, for the Secretaries’ ICT Governance Board (SIGB). The Government considers
agencies’ capability as part of the New Policy Proposal (ICT Two Pass Review) process but the results also
provide a strong evidence base for ‘earned autonomy’ in the Commonwealth.
A working group of key stakeholders with the relevant background and subject matter expertise to oversee
this work will ensure a coordinate and integrated approach to progressing portfolio, programme and project
management capability in the department.
Key Activities and Deliverables:

Oversee and provide subject matter advice required for the development of the department’s Capability
Improvement Plan

Monitor the implementation of the Capability Improvement Plan against agreed actions and milestones
to maintain the department’s high maturity rating

Ensure the integration and streamlining of portfolio, programme and project management processes and
tools within the department

Advise the Executive Committee on approaches to best support and improve portfolio, programme and
project management in the department including:
o Continued efficient use of resources
o Greater benefits realisation
o Improved stakeholder engagement
o Improved accountability, organisation governance & reporting
o Improved transparency.
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2014-15 DHS CIP V1.1
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
Monitor the effectiveness of the portfolio, programme and project processes, standards and frameworks
(including compliance) and recommend changes as necessary.
Meeting Protocols and Sub-committees:
The working group will meet fortnightly from 17 January 2014 to 14 February 2014 during the planning
stage and then oversee the Capability Improvement Plan implementation post approval on a monthly basis.
Performance Measures:
Members of the Working Group are required to undertake an annual self-evaluation of the operation of the
Group against its purpose, key activities, deliverables and performance. This may result in suggestions to
update or change these Terms of Reference or the Group’s membership or processes. A summary of the selfevaluation will be provided to the Chief Financial Officer.
Membership:
10 National Managers from across the department providing relevant expertise in process perspectives and
generic attributes of P3M3.
In addition National Managers selected are identified as process owners for the CIP activities.
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