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Machinery of Government

Key Issues for Program Management

Tony HofPartner

11September 2013

2© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG and the KPMG logo are registered trademarks of KPMG International.

Machinery of Government ImpactsKey Issues in Program Management

Context

1. Program implementation

2. Program closure

3. Due diligence

Focus areas

• Workforce (Skills and knowledge)

• Planning and Implementation

• Monitoring (Performance and Conformance)

• Records

• Financial Management

• Approvals / Delegations

• Risk Management

• Funds Control and Cash Forecasting

• Systems and Data

• Policies and Procedures

• Customer Compliance

3© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG and the KPMG logo are registered trademarks of KPMG International.

Program Implementation

Context

• No time

• Lack of design certainty or detail

• Policy announced ahead of design

• Often involves ‘innovative’ program design elements

• Starting from scratch (no team, no system, no delivery arrangements)

Potential issues

• Planning and implementation

• Risk management (understanding and documentation)

• Workforce planning / skills and capacity requirements

• Stakeholder communication and management

• Records management and knowledge retention

• Lack of Quality Assurance (no time)

• No documented procedures (done on the run)

• FMA compliance

Good practices

• Critical Path analysis

• Leverage off lessons learnt

• Independent assurance / health check review

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KPMG and the KPMG logo are registered trademarks of KPMG International.

Program Closure

Context

• Sometimes known well in advance, sometimes not

• Program has an end date but often activities continue on for some time

• Some programs will be re-born, re-badged, re-designed but others not

• Team is disbanded with not clear accountability for ongoing issues

Potential issues

• Planning for program closure

• Stakeholder communication

• Ongoing functions or financial commitments

• Knowledge management

• Data management / legacy systems

• Performance measurement

• Ability to recommence if and when required

• Legacy issues (e.g. complaints, AAT cases)

• No one identified to have ongoing accountability

Good practices

• Closure checklist

• Early and ongoing stakeholder engagement

• Lessons learnt analysis / evaluation

5© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG and the KPMG logo are registered trademarks of KPMG International.

• Program health check

Program Due diligence

Program attributes and context

• Policy drivers

• Program maturity

• Level of complexity

• Nature and value of benefit provided

• Funding mechanism

• Customer profile

• Delivery model

• Contractual arrangements

• Resources

Focus areas

• Financial Management

• Risk management

• Stakeholder analysis and relationships

• Policies and procedures

• Customer compliance

• Customer satisfaction

• Legacy systems / data quality

• Records (completeness / accuracy)

• Knowledge / skills retention

Issues identified

• No single source of truth (program ‘genesis’ file)

• Lack of accurate financial commitment profile

• Lost of corporate memory

• Key control gaps (e.g. lack of compliance focus, FMA breaches)

• Lack of performance information (or ability to demonstrate performance)

Useful resources • Internal audits

• ANAO BPG and CGG better practice principles

• Other: Patricia Scott’s 91 questions

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QUESTION AND ANSWER SESSION

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG and the KPMG logo are registered trademarks of KPMG International.