This week the WA Office of the Auditor General released a report on project management in the WA public sector.[1]
It was not good news – but did identify steps that can lead to better results.
The report considered 10 projects, from 6 agencies: Department of Mines, Energy Regulation and Safety, Department of Justice, Public Transport Authority, WA Health and WA Police Force.
Key findings on the projects:
- 8/10 delivered later than planned with delays from 4 to 78 months (6.5 years)
- $1.6 billion over previously advised budgets with further increases expected.
The agencies told the OAG that cost increases were mainly from changes in project scope ‘driven by improved project planning and better understanding of business needs and detailed solution requirements.’
What can be done?
The OAG found that those agencies with external project management assurance performed better, through
- Documented project governance
- Probity management
- Risk management
- Project reporting
The OAG also urged agencies to make use of the existing project management guidance in the public sector including the Office of Digital Government’s project resources.
In our view the comment that the changes in project scope were ‘driven by improved project planning and better understanding of business needs’ indicates that much stronger project risk management is needed from the beginning.
IT projects will always be a difficult environment with complex technical and stakeholder issues – but that is more reason to get on a strong footing with project management.
And it is encouraging that the Auditor General is highlighting the value of external support with IT projects.
For example, having an independent assessment of project risk can be a sound, low-cost investment at project commencement and at key points in the project life cycle.
About Horizon Point
Horizon Point is a management consulting firm supporting organisations to build capacity, manage change, and achieve their objectives. We are expert, trusted advisers on project management, risk and governance, strategy, and planning.
Contact us
If you’d like to discuss how this applies to your organisation, feel free to get in touch.
Andrew Lee
Director
Horizon Point
[1] https://www.linkedin.com/posts/office-of-the-auditor-general-for-western-australia_transparency-needed-on-states-major-it-projects-activity-