Too many Australian Public Service major digital projects are not on track. Photo: Michelle Kroll.
More than a third of the Federal Government’s major digital projects are failing to deliver with confidence, according to the latest update from the Digital Transformation Agency.
The agency’s second Major Digital Projects Report reveals 37.1 per cent of projects, worth $3.5 billion, are not sufficiently on track.
They have been found to be delivering medium to lower levels of confidence.
Projects worth $7.3 billion, however, are on-track and more than three-quarters of new projects are generally starting off well, reporting high or medium-high delivery confidence.
High or medium-high delivery confidence indicates projects are on track to deliver agreed outcomes.
The report notes that the government’s IT projects are being delivered against a backdrop of rapid and continuous technological change.
DTA’s chief executive officer Chris Fechner points out in the report that “this dynamic environment” is reflected in the changes in delivery confidence ratings over the past year as projects move through different stages in their development.
“Successful delivery can be challenging, with many of the projects in this report among the largest and most complex projects being delivered in our region,” he says.
“The case studies in this report highlight the transformative impact of several projects but, with 110 active projects, it’s just scratching the surface.
“Investment in digital transformation is intensifying as agencies work to meet the expectations of Australians for simple, secure and connected services. These services require digital projects that build and sustain world-class data and digital capabilities.
“Continuously improving how the Australian Government designs and delivers its digital projects is at the core of the Digital Transformation Agency’s (DTA) role. Central to this work is an ongoing focus on creating the conditions projects need to succeed.
“Transparency is one such condition and is a cornerstone of good governance which, in turn, fosters trust and accountability.”
A mandatory program is starting this year to ensure senior responsible officials for digital projects are equipped to confidently lead digital projects successfully.
The report states the program includes a simulation of a digital project across its life with a focus on building capability in assurance, benefits management, governance, project remediation and commercial acumen.
“Following final trials, the program will be available through the Australian Public Service Academy and mandated for all leaders of the major digital projects included in this report,” it states.
There are three tier ratings for digital projects, with higher tiered projects subject to increased levels of central monitoring and oversight:
- Tier 1 projects are the Australian Government’s most complex and strategically significant digital projects.
- Tier 2 projects are also complex and strategically significant, but with smaller scope, lower criticality and/or lower cost than Tier 1 projects.
- Tier 3 projects are significant investments that generally represent lower risk.
A higher proportion of Tier 1 projects (45 per cent) are reporting a delivery confidence of medium or lower, compared with Tier 2 projects (33.3 per cent), which the report says is likely reflecting the added risks and complexities inherent to Tier 1 projects.
The report outlines the common themes among projects rated medium or lower as being:
- dependencies on changes to, or introduction of, new legislation
- the complex nature of the technological solutions being implemented – including where integration of systems across organisations and even jurisdictions is required to achieve outcomes
- where digital transformation is occurring alongside major organisational changes, or at a pace the organisation is struggling to sustain (for example, due to multiple concurrent digital projects putting pressure on an agency’s enterprise capability), and
- challenges attracting and retaining staff with the required skills, including in digital disciplines such as cyber security, as well as in project/program management disciplines such as benefits, change, risk, budget management and integrated scheduling.
“Projects reporting lower levels of delivery confidence are generally challenged by more than one of these themes,” it states.
“As noted in the July 2023 Review of the Modernising Business Registers Program, ‘the difficulty of effectively implementing a digital and ICT transformation project increases exponentially with each additional layer of complexity’.”
There are now 110 active projects under central assurance oversight, up by 22 since the last report a year ago.
This accounts for an additional $6.7 billion in investment, totalling $12.9 billion across 46 Australian Public Service agencies.
Common success factors among projects rated high or medium-high are experienced staff on the project team; effective governance models keeping pace with the needs of the project; mature approaches to risk and issue management; and effective partnering and collaboration between agencies and delivery partners.
Original Article published by Chris Johnson on Riotact.
