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Diagram showing implementation approach in context of overall business case

Implementation approach

Better Practice results: Well-structured phasing reduces many common risks to project success, allows earlier delivery of outcomes, and can be more responsive to the priorities of government.

Executive involvement improves the balance between technical issues and government priorities in project phasing.

Planning a project as a series of linked but independent modules or phases, with each phase providing a particular capability or outcomes, can have many benefits. However, there is a risk that the structure of project phases will be guided by the perspective of those undertaking the detailed planning.

To help achieve an appropriate balance between technical requirements and government priorities, it is better practice for the project sponsor to:

  • understand the major constraints imposed by logical dependencies between different project components – for example, a new database may be needed before any applications can be received;
  • provide guidance to the project planning team on the importance of different factors, such as risk reduction or timeframe, to use when comparing alternative implementation approaches – taking into account the views of key stakeholders; and
  • review and agree to the proposed implementation approach.

Example of implementation approach: A move to standardised internal processes

The objective of a project is to implement a new agency-wide process for managing service providers, using the same ICT system for all business units of the agency. The business units currently use many different systems. Functions to be standardised include:

  • allocating work to a provider; and
  • obtaining reports on work done.

Broad implementation approaches include:

  • introduce all functions to all units at the same time;
  • introduce all functions to one unit, then another unit, and so on; and
  • introduce a single function to all units, then another function to all units, and so on.

Each of these ways of packaging the work has different advantages and disadvantages, which vary according to stakeholders’ perspectives.

For example, in terms of sequencing functions, the function for allocating work to providers may have the potential to significantly improve direct client service – so clients would prefer this function implemented early. On the other hand, the function for reporting on work done may result in cost savings in both the agency and service providers.

Alternatively, if the overall project focus is reducing the cost and complexity of multiple systems, an approach of introducing all the functions to one business unit at a time may be attractive. This sequence would allow the existing systems to be progressively decommissioned (or provide early warning of any problems with decommissioning).

Some issues for the project sponsor to consider in assessing and comparing implementation approaches are listed in the following table.

ISSUE POTENTIAL CONSIDERATION FOR IMPLEMENTATION APPROACH
Reducing risk and uncertainty Ability to test uncertainties early; or allow risks to be identified and resolved with a lower impact.
Timing of benefits Providing some functions earlier than otherwise.
Recipient of benefits Relative priority to give to benefits accruing to different stakeholders.
Increasing flexibility or reducing possible losses By packaging work to provide points for possible project exit or change of direction that would minimise wasted effort and provide some ongoing value of products delivered to that point.
Resource impact Packaging work taking account of who is involved to avoid impact on areas with other responsibilities, such as a peak work load for business-as-usual activities and other possible projects.
Management control Packaging work so that progress can be reported in terms of a series of completed and independently useful project phases provides reliable status information, and useful choices on the value of further funding. (In contrast to a series of parallel, interdependent phases which may be ‘80% complete’ but with no delivered value, which limits the choice of further funding to ‘all or nothing’).

Where different implementation approaches offer significant variations in the timing of benefits to different stakeholders, or the effectiveness of project control, it is good practice to provide these as options in the business case, which are analysed and compared with other types of options – such as different solution approaches. Any significant information about the implementation approach should be included in the executive summary, for the information of decision-makers.

In addition to considering and deciding the overall approach to implementation, as discussed above, it is important for the project sponsor to consider the work needed to effectively develop or acquire the project products, and to introduce the project products into effective use. Chapter 4: Overview of project implementation at page 87 provides an overview of the typical activities during project implementation. This is useful background for considering the implementation activities which will need to be budgeted for in the business case.

Modular implementation reduces risk

“Public sector budgeting systems can encourage the funding of large and highly visible IT projects. … This is unfortunate, since the risk of failure is proportional to the size of the project. Very large projects, i.e. expensive long-term and complex initiatives, often fail. … Where big projects are unavoidable, they should be divided up into self-contained modules that can be adjusted to changes in circumstances, technology and requirements.”30

… OECD Policy brief.

30: OECD, PUMA Policy Brief No.8 The hidden threat to E-Government, 2001.