Agenda item

A report of the Director of Legal and Governance Services was presented, the purpose of which was to outline the Council’s approach to Programme and Project Management (PPM) and summarise activity in the past two years and planned developments for 2024 and beyond, to provide the Committee with assurance that the Council had robust arrangements in place to support the delivery of its strategic aims and priorities.

 

The Portfolio Management Office (PMO) had responsibility for the strategic oversight of the Council’s portfolio of programmes and projects that were managed within the corporate Programme and Project Management Framework (PPMF), which was in place to provide a consistent approach to PPM governance and documentation.

 

Currently, the PMO had oversight of the corporate portfolio comprising 21 projects, all of which support the achievement of strategic priorities and which continued to further embed the PPM framework across the Council, ensuring compliance through monthly project health checks.

 

Projects managed within the portfolio were categorised as either Level 1 (the most complex projects) or Level 2, and their performance was assessed and reported using Red, Amber, and Green (RAG) indicators that measured how well the project was delivering against expectations.

 

The table at paragraph 7 of the submitted report showed a positive increase in the overall performance status of projects to date (end February 2024) in the last 12 months. 

 

An internal audit of project management arrangements in 2023, determined that a sound system of governance, risk management and control existed, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited.  The overall opinion of the controls within the system was ‘Substantial Assurance’ in relation to project governance arrangements in place to support the Council’s strategic objectives, with a strong commitment to the PPM framework within the Council.

 

The PPM Framework and documentation had recently been reviewed and refined with the following minor amendments made to ensure the framework remains fit for purpose:

 

•           Lowering the financial benefits thresholds in the Benefit Complexity Matrix tool, to ensure any projects delivering savings were prioritised and were given the highest level of governance and scrutiny.

•           A revised and simplified Programme Definition document to ensure a more appropriate and proportionate level of detail was captured.

•           A revised and simplified Level One Business Case to ensure a more appropriate and proportionate level of detail was captured.

•           The development and implementation of ‘An introduction to the Council’s PPM Methodology’ online training module.

•           The introduction of monthly project health checks.

 

A copy of the updated Portfolio, Programme and Project Management Framework: 2024-27 was attached at Appendix 1 to the submitted report.

 

The Council was currently mid-way through a corporate governance improvement journey and was subject to a Best Value notice issued in January 2023, from the Department of Levelling Up, Housing and Communities (DLUHC).

 

To respond effectively to the wider governance challenges facing the Council, the Corporate Governance Improvement Plan was refreshed in September 2023 around two specific themes: cultural transformation and financial resilience.

 

An Independent Improvement Advisory Board was established to provide expertise, challenge, and advice against delivery of the revised governance improvement plan.  Progress against the plan (including the Section 24 improvements), was reported at Board meetings, as well as each meeting of full Council and Audit Committee.  Whilst Government recognised progress made, due to the seriousness and extent of the issues identified, the Best Value Notice had been extended for a further six months.  Within this timeframe, there was an expectation to demonstrate traction and progress on development and delivery of the corporate transformation portfolio.

 

Successful Council-wide transformation of the organisation was integral to delivering the Council Plan 2024-27, its Medium-Term Financial Plan, and removal of the Best Value Notice through development of new approaches to the design of service delivery, driving of improved controls and efficiencies, and implementation of effective demand management measures as part of the wider governance improvement arrangements.

 

The scope, scale and pace of change required over the course of the MTFP would require building upon these foundations, refining governance and delivery approaches, applying best practice programme and project management principles in a pragmatic and proportional manner, and ensuring the PMO had the capability and capacity to deliver effectively.  The Portfolio Management Office (PMO) would play a vital enabling role in the successful delivery of the Council’s Transformation Portfolio, and existing priority business as usual programmes and projects, both directly linked to the achievement of a balanced budget over the next three years.

 

A proposal to strengthen the capability and capacity of the PMO was currently under consideration.  To ensure the existing priority projects continued without disruption, it was proposed that the PMO Manager continued to focus on oversight, assurance and support of the existing Operational Portfolio, and that additional capacity was created dedicated to the Council’s emerging Transformation Portfolio.  A proposed structure was included at paragraph 21 of the submitted report.  Once new transformation capability and capacity was implemented and embedded, a review of the PMO structure would be appropriate in consideration of the Council’s longer-term requirements.

 

In response to a query from a Member it was clarified that the delivery resource required for the PMO would be identified in the transformation report to Council.

 

AGREED as follows that the Audit Committee:

•           Approved the revised Programme and Project Management Framework (PPMF) 2024-27.

•           Noted internal audit opinion that robust arrangements were in place to govern programme and project management within the Council.

•           Noted project delivery performance over the past year.

•           Noted the plans to increase PMO capability and capacity to support delivery of the Council’s strategic priorities, aims and emerging Transformation Programme.