Professional Documents
Culture Documents
Us Federal Government It Projects
Us Federal Government It Projects
White Paper
September 2009
2 Using PRINCE2 to Manage US Federal Government IT Projects
Agency responses to these changes are when CPIC reporting is a pre-defined of CPIC while controlling and delivering the
often seen as adjustments in the project output designed into the project method, project. You must use a method that defines
management processes and tools used to CPIC becomes integral with the other daily how and when to apply project management
control the investment. Such a response management and decision-making processes and techniques. The method
weakens an agency’s ability to mature their activities of project management. must be scalable to the size of the
project management practices. Instead, investment, and it must define governance,
agencies should continue to develop and Additional challenges face government tools and techniques that can balance the
mature their project methods and tools, project managers. The goals of CPIC are pulling forces that may exist between
while adjusting reporting output to match focused on budget management, not government and contractor. PRINCE2 is a
the OMB A-11 annual requirements. project management, which creates conflict de facto standard project management
in tactical management objectives. IT method from the UK government. It is
Practitioners often confuse the cyclical phases Investment Management support offices public domain, available for anyone to use
of the CCA’s Select–Control–Evaluate as a within the agencies are tasked with collecting to manage a project, it can support the
project management lifecycle, for example, and reporting financial information from many requirements of CCA and CPIC, and
thinking that a project is in development the agency’s projects, while project it can be tailored to fit most any size project.
activities only during the Control phase. managers focus on performance to cost
This is inaccurate. The three phases of the and schedule milestones, earned value
CPIC IT Investment Management lifecycle
define the sequence of when budget and
management, risk and issue status, and
baseline change control logs. Too often, What is PRINCE2?
investment management activities occur to the data and information that reports PRINCE2 is a structured project
plan, monitor and report the progress of IT project status is gathered using tools and management method recommended for
investment dollars. The “project” lifecycle techniques that are in contrast with the use on all projects commissioned by the UK
of CPIC has a linear progression, from investment management reporting government. In 1989, the Central Computer
Planning and Acquisition, to Management requirements of the CCA, CPIC and OMB. and Telecommunications Agency (CCTA) of
In-Use and Disposition. It starts when a the UK government first established PRINCE
business need is first defined and IT systems (PRojects IN Controlled Environments) for
planning activities warrant a new project
initiative, then continues to product
Finding a Solution controlling information systems projects,
but the method soon realized a greater
acquisition/development, systems operation
(production), and then asset retirement. In
to CPIC following. The UK Office of Government
Commerce (OGC), continued development
response to this, agencies should define Project managers are searching for a of the method into what is now PRINCE2
and operate an enterprise lifecycle governance model that can support both (2009). Improvements include greater
management framework that integrates the day-to-day needs of project delivery clarity of seven principles that guide
governance, processes and information into and the requirements of CPIC investment behavior of the project team as they perform,
a decision model that includes the management reporting. While the PMI’s streamlining of the processes defined
requirements of investment and acquisition Guide to the Project Management Body within the method, and instruction on how
management, enterprise architecture of Knowledge® is clear in identifying to tailor PRINCE2 to suit most any project’s
planning, project management office tools and techniques for performing needs. PRINCE2 has gained wide acceptance
(PMO), IT systems operations and project management activities, it is by its throughout Europe and Africa, and is
maintenance, and capital asset control. own admission “a guide rather than a quickly gaining popularity in North America.
methodology”, and it is not designed to
CPIC defines the activities of budget address compliance requirements, such
and investment management. as those defined by CCA. To operate
a project in a way that will achieve the ™
Project managers react to the oversight needs of CPIC, project managers must
and governance of CPIC as a set of tasks utilize a method that supports sustainment
and requirements that are in addition to of an investment business case, clearly
their effort to running the project. This has identifies a governance process, and lends
led to frustration while project mangers itself to regular reviews for “Go/No-Go”
work to deliver their projects. Project decisions, as required by US government IT
managers sometimes view CPIC reporting investment management budget cycles.
as a “check the box” activity. Maintaining
compliance to CPIC reporting can take Satisfying the requirements and objectives
considerable effort if it is not integrated to of CPIC is not easy. However, with the right
the project governance approach. However, project management method the project
manager can easily achieve the requirements
4 Using PRINCE2 to Manage US Federal Government IT Projects
Subsequent Final
Pre Project Initiation
Delivery Delivery
Stage
Stage(s) Stage
PRINCE2 Stage-Gates for Controlling Project Delivery
© Crown copyright 2007. Reproduced under licence from OGC. Figure 4.2 The development path of the business case – Section 4
This provides cadence to project quality, and product configuration stage plan is completed. The SB process is
management activities, directing results management are all supported by PRINCE2. again used to report and close the stage,
toward pre-defined goals, and success. Techniques from other industry-popular and then subsequent Delivery Stages in
project management guides easily integrate the project plan repeat the CS and MP
In the Pre-project Stage, the investment’s with the processes of PRINCE2 to monitor processes to continue solution fulfillment.
business objectives are determined by and control the investment.
performing the activities in the Starting up The Final Delivery Stage completes
a Project (SU) process. The business As the Initiation Stage completes, the activities from the CS and MP processes
justifications for the investment are determined, Managing a Stage Boundary (SB) process during this last phase of the project. Then,
scope is defined, and alternatives are calls for the project manager to plan the using the Closing a Project (CP) process,
analyzed. Through performance of the SU next stage of the project. The project the project manager performs final product
process, the business case is established, manager performs a business case review, acceptance testing, resolves or retires open
readying the project team to obtain updates the project plan, and reports risks and issues, reviews the investment’s
authority to proceed with the investment. status of the investment to the project performance to baseline, conducts a
board. benefits realization review, and then
In the Directing a Project (DP) process, recommends the project for closure to the
the project is reviewed and approved by Subsequent Delivery Stages follow executive investment review board.
an executive review board to place the the Controlling a Stage (CS) process. CS
investment in the IT portfolio. DP processes provides guidance to the project manager
manage the business case for the duration
of the project lifecycle by providing senior-
to authorize work to the project resources,
monitor and report progress, manage risks Seven Themes of
level oversight of the investment’s progress. and issues, then take corrective action on
variances to the plan. The project board PRINCE2
The Initiation Stage continues the DP delegates day-to-day team activities and Project management provides little value
process to provide regular oversight and ad decisions to progress the project on a unless it is performed with predefined
hoc direction of project activities. Upon stage-by-stage basis. Activities of the CS intent. PRINCE2 identifies seven themes
approval to proceed with the investment, the process assigns work to team members that are linked to project management.
Initiating a Project (IP) process establishes a to ensure that they remain focused on Each of the seven themes in the PRINCE2
solid foundation for achieving project delivering the products and goals of the method remains in effect during the entire
success through the identification of project project plan. The Managing Product (MP) project lifecycle. They are referenced
objectives and business benefits. IP also Delivery process provides direction to the according to a predetermined workflow
instructs the team to tailor project plans team members. As products are delivered, of the method to minimize risk, and to
and invoke governance over project achievement to design specification is heighten the quality of team performance
activities. Plans to control communications, assured; the business case is reviewed and results.
scope, cost and schedule, risks and issues, for relevance to mission, and then the
Subsequent Final
Pre Project Initiation
Delivery Delivery
Stage
Stage(s) Stage
Directing DP
SU
SB SB CP
Managing
IP CS CS
Delivering MP MP
IT projects. Simply put, each agency must assurance and control, and other project proposed budget to OMB during the Select
have a defined plan for buying, building, management techniques. However, these phase. Approved through the President’s
operating and retiring their IT assets, and are only broad brushstrokes of guidance for budget, the initiative receives funding from
they are accountable to report project the project manager. The CPG does not Congress to become a sanctioned project
status timely and accurately. define a project management method that ready for acquisition.
must exist beneath these phases. So then,
OMB annually releases Circular A-11, how can project managers lead their Quality and risk management are central to
a budget management directive that projects toward success while meeting the PRINCE2, initiated during the Starting up a
requires agencies to report their annual requirements of CPIC? Project and the Directing a Project
IT budget (using the Exhibit 53 form) and processes of the Pre-project stage. The
report progress toward goals within the The CPG’s objectives of the Planning PRINCE2 method supports the CPIC
business case of each major IT project and Budgeting phase are designed to Planning and Budgeting phase through
(using the Exhibit 300 form). However, support IT investment decision-making. development of the project business case.
A-11 does not define, nor prescribe, Alignment of strategic planning to The project manager justifies the business
a project management method or project performance goals is determined case to ensure that the investment is
approach for tactically controlling and by utilizing an agency-level enterprise planning to build the right product, is
delivering the project. Circular A-11 is architecture plan. An Integrated Project fulfilling the right business need, and that the
only a process for reporting status of the Team (IPT) is established to manage final products will serve the organization’s
budgeted and funded investments. the project. The IPT formulates a mission. Once the business case is reviewed
clear definition of system functional and accepted by the investment board, the
OMB provides agencies additional requirements, performs an analysis of project is authorized to proceed to the
direction in their A-11, Part 7 Supplement: alternatives to select the best technology Initiation Stage.
Capital Programming Guide (CPG). The solution, and establishes operating and
objective of the CPG is to show agencies reporting baselines. They must apply PRINCE2 keeps a focus on the business
how project management activities relate risk management techniques to reduce case to maintain IT business value.
to IT investment management. It helps to the chance for incurring costs associated
answer the question, “Will this with delivery failure, and integrate earned
investment drive transformation of the CPIC’s requirement for EVM necessitates
value management (EVM) into the a “deliverables-based” work breakdown
business toward the agency’s mission?” contract acquisition strategies. The agency
The CPG defines a Capital Planning structure to define project scope. During
implements an executive review process the PRINCE2 Initiation stage, the product
Lifecycle: a four-phased approach to IT to oversee investment performance and
investment management. The lifecycle breakdown structure becomes the
adjust the investment as the needs of the framework for managing solution delivery.
identifies strategies to achieve greater mission change over time.
service delivery and move program Activities of the PRINCE2 Directing a
effectiveness toward mission goals. The Upon completion of a comprehensive Project process establish oversight and
CPG recommends use of risk management, planning effort to define an integrated governance to lead investment plans
earned value management, quality project plan, the agency presents its toward mission goals.
8 Using PRINCE2 to Manage US Federal Government IT Projects
In the Acquisition phase of the Capital and contractor resources applied toward action plans where necessary to keep
Planning Lifecycle, the project team development activities. Once the integrated the project moving toward its strategic
validates decisions and objectives from the project plan is approved by the ERC, a and mission goals. Solution acceptance
Planning and Budgeting phase. The team baseline is recorded as the project plan. activities of the Acquisition phase include
re-examines the mission needs to affirm a complete review of delivered products
investment justifications in the business The Control phase of CPIC is used to measure to affirm that they meet all requirements
case to determine a “build versus buy” and improve investment performance. It and objectives defined by the business
acquisition strategy. The IPT addresses instructs project managers to perform case. Product quality reviews, system
acquisition risks, and then the project is regular monitoring of product development testing, and recording IT assets into a
initiated. Teams are established, contract progress, cost, schedule and performance configuration management baseline also
support secured, and then development variance, review of scope within the work happen. Any product deviations discovered
activities of the Acquisition phase commence. breakdown structure, and assessment of during solution acceptance are addressed
risk to the investment. Change control must through rework or an accepted variance to
An Executive Review Committee (ERC) be applied to maintain progress toward plan. Additionally, contract performance
assesses the project team’s plan for contractual scope. Investment control and requirements are assessed to determine the
solution delivery. Following a successful oversight is in the hands of the project contractor’s success to the cost, schedule
procurement, the IPT operates project manager during the Control phase. Periodic and performance goals of the contract.
governance that integrates scope, cost, status reports are brought to the ERC.
schedule and quality into a comprehensive
As part of the CPIC Evaluate Phase, the PRINCE2 uses a stage-gated approach to
project management approach. EVM
IPT and ERC conduct reviews of project controlling project progress.
is used to monitor and control planned
and actual results of both government progress to reaffirm the acquisition
decision. The ERC recommends corrective
Using PRINCE2 to Manage US Federal Government IT Projects 9