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20 November 2001
THE PATH TO SUCCESSFUL IT PROJECTS - ANDREW SMITH
Andrew Smith, Chief Secretary to the Treasury, today launched the work of a joint government and industry group, aimed at delivering better IT projects and creating a government market place more accessible for suppliers.
It represents a significant breakthrough in the approach to IT enabled business change by both government and industry and joint determination to ensure that, over time, future IT projects are delivered IT effectively. It also seeks to put an end to the cost and time overruns associated with previous IT project failures.
The programme of work was carried out by the Senior IT Forum, jointly sponsored by the Office of Government Commerce (OGC) and Computing Services and Software Association under the chairmanship of OGC's Chief Executive, Peter Gershon.
As part of the programme Andrew Smith also announced today that the Department of Health, the Met Office and the Charities Commission would test a new approach to project leadership in live IT procurement projects in their departments. This would enable a supplier role to be developed to strengthen working relationships with Government to deliver successful IT projects.
Speaking at a Computing Services and Software Association conference in London, Andrew Smith said:
?Successful implementation of IT projects is important for the Government's delivery of improved public services. These practical proposals should make it easier for Government and Industry to deliver business change supported by IT solutions that stand the test of time and ensure effective use of taxpayer's money.?
The new approach to procuring and delivering successful IT projects includes:
- a new framework for the leadership of projects
- high level value for money guidance
- a partnering approach recommended for all complex IT projects
- a joint education programme as part of OGC's wider commercial skills framework
- input to a wider supplier code of conduct
Peter Gershon, Chief Executive of OGC said:
?The OGC is at the heart of helping government become a more intelligent client in procuring and delivering goods and services. Set against the progress already made under the SPRITE programme, today's announcement represents a real step forward in opening the door to a new era of leadership and effective ways of procuring IT projects which deliver value for money.?
John Higgins, Director General of the Computer Services Software Association said:
?The work of the Senior IT Forum has been directed at driving out the systemic problems in public sector IT procurement. These first tangible results represent a significant step towards these goals and reflect the continued commitment of both Industry and Government to deliver real improvement in this difficult area.?
The Senior IT Forum's recommendations are all intended to ensure that behavioural patterns are addressed on both the government and industry side. This will be reinforced by the roles of the Government's Senior Responsible Owner (SRO) and Industry Equivalent (IE).
The Government will shortly publish guidance explaining the way it evaluates value for money. This transparent approach will make the government market more accessible for suppliers wanting to enter it who, previously, may have been discouraged from bidding for the Government's IT business.
The work of the Forum will help encourage partnering behaviours such as openness and trust. In time this will mean less disputes and reduce the time and costs involved in delivering IT projects. The OGC will shortly issue guidance to support effective partnering, including a standard approach to partnering in contracts.
The OGC will extend its training programme for government staff across civil central government by introducing a Wider Commercial Skills programme. The Senior IT Forum is working with OGC to identify areas suitable for joint training with government and industry to facilitate the developments of better relationships between them.
The Senior Forum will contribute to OGC's work with the wider industry by introducing a supplier code of conduct for industry. The code will set out a standard of behaviour and conduct for supplier working with government. This will support the existing government ?Code of Good Customer Practice? which was launched in June 2001.
These changes will create a better understanding between government and industry at the very outset of a project. They complement the Government's Gateway Review process for civil central government announced in February 2001 to ensure that projects have the capability to deliver sound business cases and long term effectiveness.
NOTES TO EDITORS
1. Senior IT Forum is chaired by Peter Gershon, Chief Executive of the OGC. It is jointly sponsored by the OGC and Computing Services and Software Association and comprises representatives from both the public sector and the IT industry. It addresses joint systemic issues facing government and industry in the acquisition and implementation of IT-enabled projects. The Senior Forum held its inaugural meeting on 12 October 00.
2. Senior IT Forum established four working groups containing a mix of government and industry representatives investigating the following key areas: building open relationships, procurement processes, people and skills, delivering business change. Those groups identified key issues that needed to be addressed to ensure the success of IT projects in the future.
3. Today's announcement addresses Senior IT Forum's working groups? recommendations that found there were five key barriers to long term success: lack of clear private sector leadership parallel to the public sector Senior Responsible Owner (SRO);
- lack of transparency to suppliers of the assessment of value for money;
- lack of openness and trust between government and industry;
- too many problems resolved by litigation instead of on the ground;
- contracts often failing to encourage partnering behaviour.
4. The OGC was set up in April 2000 to act as a catalyst for improving departments? commercial activities in the field of procurement. Following an Alignment Review, which took effect on 2 April 2001, the OGC formally absorbed the work of the former PACE (Property Advisers to the Civil Estate) and CCTA (Central Computer and Telecommunications Agency), excluding its Managed Services Division, which has now merged with the former TBA. The former TBA (The Buying Agency) became an OGC Trading Fund in its own right - OGCbuying.solutions
5. The OGC took over the responsibilities of the SPRITE programme, designed to support the long term effectiveness of future IT projects, from the Cabinet Office in April 2001. It has implemented the ?Successful IT? report recommendations. SPRITE has taken forward the Senior IT Forum's work in government.
6. An Appendix containing the new arrangements for procurement and the delivery of future IT-enable projects is attached.
7. Press Enquiries to;
Malcolm Graves at HM Treasury on 07785 316773 /e-mail Malcolm.graves@hm-treasury.gov.uk or
Martin Day at OGC on 0207 211 1318 /e-mail Martin.day@ogc.gsi.gov.uk or
Nick Kalisperas at CSSA on 020 7395 6749 /e-mail nick.kalisperas@cssa.co.uk
APPENDIX: NEW ARRANGEMENTS FOR PROCUREMENT AND THE DELIVERY OF FUTURE IT-ENABLED PROJECTS
New framework for the leadership of projects
Behavioural patterns have often been at the heart of the difficulties in delivering facilities and services. IT projects have suffered from a lack of cultural understanding and strong leadership qualities. In future the Senior Responsible Owner (SRO) from the government side and an industry Equivalent (IE) from the industry side will work jointly to set the basis on which the two parties will work together to deliver the IT-enabled business change. They will be seek to resolve issues arising from cultural differences.
Value for money guidance
The OGC will shortly issue high level value for money guidance. This will make the process more transparent and more accessible for suppliers wanting to enter the market place and bid for the Government's IT business. The guidance will reinforce the point that value for money is about the optimum combination of whole life cost and quality to meet the user requirement. It has never been just about lowest price.
A partnering approach to all complex IT projects
The OGC will shortly issue new guidance on drafting contracts that support effective partnering. A partnering approach on projects with complex requirements will result in the improved use of resources by improving the overall management of projects, reducing timescales on project delivery and reducing costs.
Joint Education and a Wider Commercial skills framework
The OGC will put in place a Wider Commercial Skills programme to include developments in this key area of IT. Currently the OGC is at the forefront of training government staff across a whole range of areas to increase the skills levels of public employees and to improve commercial relationships with the private sector. The Senior IT Forum is working with OGC to identify suitable opportunities for joint training with government and industry.
A supplier code of conduct
The IT industry is working with OGC to develop its own code of conduct for its members to set out standards of the behaviour and conduct for suppliers working with government. The Government already operates in line with its own ?Code of Good Customer Practice? when working with suppliers.