Project Initiation RoutemapMarch 2017

EY and the Infrastructure & Projects Authority

About the IPAThe Infrastructure and Projects Authority (IPA), formed on 1 January 2016, brings together Infrastructure UK (IUK) and the Major Projects Authority (MPA).

It exists to provide expertise for financing, delivery and assurance of major public projects, to support more effective management and delivery across government.

It reports to the Chancellor and the Minister for the Cabinet Office.

It supports infrastructure and project development and delivery across the whole of government.

In 2010 the UK Government Infrastructure Cost Review identified evidence that showed delivery failures can often be traced back to how a project was initially set up.

It suggested the need for a greater focus in the early stages on how the strategic objectives of projects are established how the sponsors articulate these requirements to ensure they are set up to succeed.

In response to these challenges, the Infrastructure and Projects Authority, working with industry, developed a Project Initiation Routemap – a framework to help identify and address many common problems encountered during the early stages of projects.

At the beginning of 2017, the IPA brought together the best programme management organisations in the UK to work with the IPA to deliver this offering, and contribute to its future development.

EY has a privileged global position as a leading provider for the IPA to deliver Routemaps to projects through joint IPA / EY marketing efforts, and to use the Routemap to support our clients.

In the 4 years since the Routemaps creation, over 30 major projects across transport, water, flood defence, energy and organizational transformation have undergone routemap assessments.

With EY as a leading provider, we are now providing this offer to a broader audience of infrastructure, transformation and IT change projects and programmes.

EY are supporting the IPA with their ambition to deliver improved outcomes for projects and programmes across the public and private sectors.

The better the question. The better the answer. The better the world works.

The Routemap provides an objective and systematic approach to validate and give confidence to owners, sponsors and clients for project initiation.

It is built on extensive research on the causes of failure for major projects and programmes, and seeks to ensure consideration of key areas of capability and alignment relevant for each projects circumstance.

The process brings specialist knowledge, facilitated exploration and reflection, and positive challenge in the areas of;

• Complexity of the project

• Complexity of the delivery and stakeholder environment

• Current capability characteristics of the delivery environment

• Required capability characteristics of the delivery environment needed best setup the planned project for success

The aim of the Routemap is to ensure that major projects are set up with the best chance of success. It targets the crucial, early stage project thinking, and is a collaborative process that brings project stakeholders together.

• It recognises that there is no one solution but there are characteristics common to both successful and unsuccessful project delivery.

• There is no ‘score-card’ at the end of the routemap. There is an improved awareness of ‘fitness to proceed’, and a robust step-by-step enhancement plan and key milestones en route to achieving this fitness.

• It contains globally recognised best practice designed to help sponsors and clients, covering: governance; requirements; procurement; execution strategy; asset management; risk management and organisational design & development as discrete modules.

What is the Project Initiation Routemap?

Entirely focused on getting a clients’ project delivery environment in the best shape possible to deliver their project

The Project Initiation Routemap gives owners and sponsors of major projects and programmes confidence in their delivery environments’ ability to deliver.

Project Initiation Routemap March 2017

Who it is for?• The Routemap is designed for senior stakeholder

groups in private or public sector environments, and is applicable for major projects in infrastructure, transformation and technology.

• It provides particular value where a proposed project is either:

- new to the participating organisations

- being delivered in a different way

- on a significantly bigger scale than those previously undertaken

- where enhancements would benefit the whole programme (i.e. government led projects)

• It is intentionally non-prescriptive to allow for the bespoke nature of large projects.

When is it used?• Typically done at the early stages of a project

where delivery strategy, key capabilities and relationships are being defined.

• Often Routemaps are performed during the planning or early design phase, where FBC or FID is still being sought.

• Some clients have found significant value in performing routemaps retrospectively, such as at the end of a major milestone or phase, to help inform capability improvements and alignment for subsequent phases.

• It has also been setup as a repeatable process over a project lifecycle to track improvements.

Strategic Assessment

Business Justification

Procurement Strategy

Investment Decision

Key Stages - Ability to influence outcomes

Abi

lity

to in

fluen

ce o

utco

me

100%

0%

SOBC HMT

OBC HMT

FBC HMT

Confirm Strategy

Confirm Justification

Competitive Procurement

Contract Award

Project Initiation SupportReadiness for Service

Benefits Evaluation

In-Service Confirm Benefits

The better the question. The better the answer. The better the world works.

Outcomes• Quickly get improved insight of;

- Internal & external stakeholder views of project complexity

- Dispersion of awareness of project complexity across stakeholders and groups

- Complexity Hotspots & Gaps in Awareness

• Improved understanding of;

- Existing capability traits good and bad, across Sponsor, Asset Manager, Client, Supply Chain

- An improved articulation of ‘what good looks like for their project’, across critical success factors of Requirements, Governance, Execution Strategy, ODD, Procurement, Risk Management, Asset Management

• Client generated enhancement plans where there are identified & agreed weak spots or misalignment in capabilities & existing plans.

Example client outcomes • Improved understanding the inter-relationship

between goals, visions, values, people, work organisation and practices, technology, culture and process/procedures.

• Cost avoidance by robust evidence inputs for assurance and approval processes.

• Development of a robust governance model with clear responsibilities and risk allocation.

• Improved alignment of sponsor programme objectives and critical success factors with delivery strategy.

• Highlighting the needs and benefits of early supplier engagement.

• Alignment of procurement strategy to owner risk tolerance and client capabilities.

• Pre-conceived ideas shown to be not the best way forward, with good reasons and a better outcome was developed by informed debate and consensus.

• Earlier visibility of strategic risks.

Outcomes

Delivery of every major project is never the same - the Routemap enables the client to see exactly where the gaps in project delivery lie.

Using the Routemap is like holding a mirror up to yourself. We used it retrospectively at Crossrail and demonstrated that the components of the Routemap correspond to the challenges that Crossrail faced and how they were actually dealt with (many intuitively).Andy Mitchell, Programme director, Crossrail

Project Initiation Routemap March 2017

Benefits

Organisations that really invest in understanding the inherent challenges of their project are able to create an environment for success at the earliest stages, while those that do not set themselves up for potential failure at a later stage.National Audit Office

Sponsor & owner benefits• Improved confidence in project outcomes.

• Clear plan for improvements in capability where identified, with milestones which can be monitored.

• When performing routemaps out across a portfolio of projects it provides a mechanism for comparing delivery confidence.

• It can be repeated as an exercise to help with future phases on large programmes (more specific than general assurance).

• There may be actions coming out of the enhancement plan which can be supported by EY or the IPA in delivering enhancements or ongoing performance assurance.

Client and Delivery Partner Benefits• Participants gain insight and draw on expertise

from other major project leaders and other sectors to help them understand how they might address the gaps found during the analysis phase.

• Generates a forum that allows constructive challenge and discussion from participants, acting as a sense check for progress to date.

• The process is aligned to the 5 Case Model so produces evidence for to support robust business cases.

• There may be actions coming out of the enhancement plan which can be supported by IPA as part of their ongoing support and assurance role.

The better the question. The better the answer. The better the world works.

A typical Routemap is delivered via a structured series of interviews and workshops, customised to the nature of the project delivery environment.

This can be adjusted to allow for geographically distributed or virtual teams, repeat reviews, or reviews of projects already underway.

How the Routemap is delivered

The Routemap has provided a fulcrum for us to change our approach and helped us to build confidence in changes to our Client Model.Miles Ashley, Director, London Underground

Align forSuccess

Sponsor

AssetManager

Client

Market

New to Organisation

Samebut morecomplex

Same complexity

approach

Complexity CapabilityAss

ess C

omple

xity

Assess Capability

Identify Gaps

Plan Enhancements

Deliver

Enhancements

& Check

Procurement

Risk Management

Asset Management

OrganisationalDesign Governance

Requirements

Execution Strategy

• Delivery Environment Complexity

• Sponsor Capability

• Asset Manager Capability

• Client Capability

• Market Capability

Assessment / Information Gathering

Synthesis of assessment outputs and information gathered.

• Overall alignment of capabilities to the challenge

• Issues and opportunities related to the management of complexity and the capability to deliver

• Thematic findings (systemic issues)

Gap Analysis

Diagnosis of the root causes of issues and opportunities to make informed enhancement decisions (closing the gaps).

• Obvious / undoubtable quick wins for ‘fixing’ red level characteristics, issues or opportunities

• Priority actions and longer term enhancements (project vs. corporate)

• Interdependencies of decision-making across enhancements

Plan Enhancements

Implementation of enhancement plans reviewing their affect.

• Incorporated in Project Execution Strategy

• Specific project-level enhancement plans

• Integrated with corporate improvement initiatives

Deliver Enhancements

Check

Project Initiation Routemap March 2017

Key People

EY | Assurance | Tax | Transactions | Advisory

About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the worldover. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

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ey.com

Amanda Clack Engagement Partner

+ 44 207 951 8275aclack@uk.ey.com

Neal Argent UK&I PM Leader

+ 44 207 951 3710nargent@uk.ey.com

Chris Lewis Partner

+44 207 951 5085clewis2@uk.ey.com

Being involved in delivering the Routemap has been an exciting experience. The process led to stronger client buy-in to areas of improvement and alignment of a complex network of influential stakeholders. The considerations within the Routemap has enabled a solid improvement in project delivery capability.Steven Gant, Partner EY

Sam Wolyniec Offer Lead

+44 207 980 9294swolyniec@uk.ey.com

The better the question. The better the answer. The better the world works.