PBO Annual Project Progress Report
In this Article, I am discussing here new ideas and thinking, so if you have a rigid mind, rest in peace in your comfort zone and don’t continue reading.
The scope of an annual project delivery report necessitates various essential reports, beginning with financial reports largely contingent on project progress report. The progress report is crucial to ascertain the financial year’s status, encompassing the balance sheet, the income statement, the cash flow statement, the profit and loss, and to evaluate the achievement of strategic plans of the project delivery.
Organizations structured around project-based operations (PBOs), such as developers, contractors, and consultants, where other departments serve in a supporting role, typically face fewer reporting complexities. Conversely, larger organizations in both the public and private sectors, with dedicated project departments alongside other business units, encounter more significant reporting challenges.
Typically, periodic, and annual progress reports detail progress offering actionable recommendations in their project areas. It is imperative that these reports include proposed plans for delivery process improvements, system enhancements, skill development, and governance reforms. These plans should be promptly reviewed and approved by senior management for implementation.
Project controls extend beyond mere reporting; they are integral to enhancing project delivery which represent a primary Key Performance Indicator (KPI) for the team.
This concept was discussed before a year with an executive director of a government agency, who questioned his accountability for a delivery team’s shortcomings. This mindset highlights a widespread mindset in some government organizations that may influence them to a culture of blame and failure. Such attitudes can lead to numerous organizational challenges, which we see it most of the time.
So what do you think, what additional elements should be included in a progress report?
Surprisingly, some organizations believe their live reporting systems suffice for progress updates. However, it’s essential to ask the followings:
- What improvements have been made to these systems? For instance, consider the procurement process for engaging market contracts – how efficient and cost-effective is it?
- What standardizations in materials and design have been implemented?
- What cost savings have been achieved?
These questions are equally applicable to other processes, and I can add a hundred questions as per the number of your processes and templates you have.
Therefore, the first section of a report should be an executive summary detailing overall performance.
The second should focus on risk management, highlighting areas for improvement.
The third should provide detailed performance and progress of portfolios, programs, and projects.
The fourth should evaluate the performance of support functions aiding project delivery.
The fifth section should outline improvements, both implemented and proposed.
Such improvements are usually around the followings area based on the organisation maturity:
- Project delivery environment and capability, including integration with the operating model, governance, systems, and processes.
- Lifecycle Management Framework tailored to organizational needs.
- Clarity and accountability in project delivery activities.
- Governance model improvements aligned with project life cycle stages.
- Agile mechanisms for approvals, reporting, escalation management, and Delegation of Authority (DoA).
- Enhancements to the integrated baseline, including scope, schedule, cost, and risk reporting.
- Strengthening of support department procedures and controls.
- Periodic monitoring and implementation of improvements.
- Reporting responsibilities and arrangements for effective decision-making.
- Technology strategy addressing cybersecurity and market challenges.
- Specific project delivery improvements suggested by teams.
- Recruitment and skill development, including training.
- And more…
These improvements are not fit for all. It should be tailored to the organization’s specific needs and project stages, however, are generally applicable to most PBOs.
Reconsidering the role of project controls can transform your organization from a fat organisation into an agile, delivery focused PBO, moving beyond the blame game often seen in organizations.
At ZALBASIREPPM, we specialize in developing tailored, cost-effective systems for every process.
For further information, contact us at
WhatsApp at 00971 545 987 458.