Bargain Hunt 2

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Bargain Hunt 2 Efficient Management of
Projects BOB RUTT Capital Programme Group
Manchester City Council
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Collaborative Working
For Real Value
Using a ROI model to demonstrate cashable and
non-cashable benefits of automation in the
delivery of projects and programmes
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The Challenge Delivering the MCC Capital
Programme to time, cost and quality

• Capital Programme Group created 2003 following
  appointment of Director and Strategic Planner
• Silo culture, no common language, inconsistent
  approach, benefits not realised
• 3 year rolling programme valued at 1billion
• In excess of 800 projects
• Routine and high risk projects
• Construction and service improvement

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Our Response Not a projectA strategy for
continuous improvement
Phase 1 Training of MCC personnel in a standard
framework for project management and the creation
of a culture of generic project delivery (the
Manchester Method)
Phase 2 Introduction/ administration of MCC
Gateway review process for project scrutiny and
approval
Phase 3 Automation of project management and
scrutiny processes with collaboration software
(PMS)
Phase 4 Creation of an MCC Centre of
Excellence for programme and project delivery
promoting best practice and reducing current
levels of spend on PPM consultancy
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Why automation (perceived benefits)

• Improved delivery and greater surety through
  document management and collaborative working
  with delivery partners
• Improved administration and adherence to the
  Manchester Method and Gateway review process
  (on-line templates and worked examples)
• Interfaces with corporate accounting GIS
• Improved reporting at project / programme/
  portfolio level for owners, board members,
  service managers and strategic management teams
• Sign off, authorisation and auditing procedures

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Procurement of PMSA service improvement project

• Market research and bid for resources
• Requirements specification via key stakeholders
• Tender OJEU notice, PQQ and ITT
• Selection of preferred supplier (best value)
• Software tailoring
• Pilot application for selected users
• Reworking and formal sign off (version 1.0)

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Management user view of PMS
A one-stop shop for programme and project
managers A high-level portfolio management view
for strategic managers Reporting links to
e-financial system (SAP) and corporate GIS
PMS provides standardisation, accurate recording
and reporting of data with the functionality to
roll up information from
Project
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Project Managers view of PMS
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ROI Model
Benefits of using a Return On Investment Model
Makes you ask the right questions of the planned
investment To be clear about where the value of
the project lies (cashable and non-cashable) and
what the costs and major risks are Underpins the
Business Case
Delivers accountability and a clear audit trail A
key concern for public sector investments
Supports fair evaluation A generic model makes it
easier to compare projects across the authority
and assists in any prioritisation decisions
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ROI Model
Approach developed by London Borough of Brent and
East Midlands Regional Centre of Excellence -
Endorsed by OGC
Design Framework of spreadsheets and macros for
calculating financial costs and benefits (staff,
technical, office, external, income and other
aspects)
Inputs Costs of initial investment and ongoing
support of business solution together with impact
assessment (qualitative and quantitative) plus
risk assessment and confidence levels
Outputs Tables/ graphs of benefits and headline
sheets for cashable/ non-cashable (Gershon)
savings over 5 years weighted by risk
Quality Assurance Inputs and assumptions tested
internally via peer group External QA via North
West Regional Centre of Excellence
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Baseline Study
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Key Risks
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Qualitative outputs from ROI

• Internal users
• 40 qualitative improvement for delivery teams
• 54 for senior managers
• Improved document management and data sharing
• Time savings at all levels of management
• Greater job satisfaction
• External users
• 18 improvement over 5 years
• Accuracy, speed and timeliness
• Strategic and corporate benefits
• 37 qualitative improvement overall
• Improved service planning and performance
  reporting
• Consistent approach to delivery and clear audit
  trail
• Prospects of improved staff retention

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Quantitative outputs from ROI

Five Year Payback Medium confidence
level 950k cashable benefits (480k
weighted) 13.7m non-cashable benefits (12.6m
weighted)
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Enough on the detailWhat about the outcomes!
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Alley Gating New East Manchester
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The Peele Centre
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User Group Meeting Wells Centre
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User Group involvement Wells Centre
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THANK YOU ANY QUESTIONS