Departmental data on benefits realisation is poor
2.17 If projects do not deliver their intended benefits they are unlikely to have provided value for money. The Authority collects information but does not report on projects' progress towards achieving intended benefits as these data are not included in the scope of the Cabinet Office's transparency policy.
2.18 Departments are responsible for monitoring whether projects realise their intended benefits once they are completed. We have reported in the past that they often do not do this. One issue is that of accountability as often those responsible for delivering a project are not those who will be monitoring the project once it is complete, or accountable for the end-user benefits, which can span decades into the future.10
| Figure 10 Delivery confidence ratings of the 56 projects present in the Portfolio across all 4 years, where all data have been disclosed The number of projects considered highly likely to deliver on time and on budget and where successful delivery was in doubt or unachievable has increased between 2012 and 2015
| |
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| Red |
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| Amber-red |
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| Amber |
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| Amber-green |
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| Green |
| Source: National Audit Office analysis of departmental data published alongside the Major Projects Authority annual reports 2012-13, 2013-14, 2014-15, and June 2015 departmental data provided to the Authority | |
2.19 The Authority is not in a position to monitor whether the benefits of a project are realised once it is complete and activities have become 'business as usual'. According to its 2012 guidance to departments, the Authority should carry out a Gate 5 assurance review or an exit review before a project is removed from the Portfolio to ensure it is on track to deliver its benefits.11 However, the Authority told us that the decision about whether a project should have a Gate 5 review before it leaves the Portfolio is made jointly with the department and depends upon the specific facts of the project. Between September 2012 and June 2015, the Authority conducted 80 Gate 5 or exit reviews and removed 96 projects from the Portfolio that were either completed or transferred to 'business as usual'. The Authority now views removal from the Portfolio as a judgement and focuses on the readiness of the business operations to accept the change, which may be better assessed in other ways. However, it has recognised that assessing whether projects have realised their benefits is an area of weakness in project delivery. It has taken the lead on work to raise the level of awareness across government.
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10 See Appendix Three.
11 A review to confirm that the desired benefits of the project are being achieved, and business changes are operating smoothly.