Guide to Using the Organizational Project Management Capacity Assessment Tool
3. Organizational Capacity and Project Complexity and Risk
Management expectations and requirements for Government of Canada projects are set out in the following policy instruments:
- Policy on the Management of Projects;
- Standard for Organizational Project Management Capacity; and
- Standard for Project Complexity and Risk.
Further expectations for sound management are included in the TBS Management Accountability Framework (MAF).
The Policy on the Management of Projects stipulates that a deputy head is responsible for conducting:
- An organization-wide capacity assessment in accordance with the Standard for Organizational Project Management Capacity; and
- An assessment of each planned or proposed project in accordance with the Standard for Project Complexity and Risk.
The two scores resulting from the above assessments are compared to determine the appropriate expenditure authority (i.e., sponsoring minister or Treasury Board) and to inform the determination of Treasury Board oversight. For all projects with a total estimated cost exceeding $1 million, the department is required by policy to seek Treasury Board approval of any project with an assessed risk and complexity level that exceeds the Treasury Board-approved Organizational Project Management Capacity Class of the organization, or if the project is otherwise identified by Treasury Board ministers for their further consideration (see Figure 1).
Figure 1 illustrates how the relationship between the Organizational Project Management Capacity Class and Project Complexity and Risk Level determines the project approval limits of an organization. For example, for a Treasury Board-approved Organizational Project Management Capacity Class of 3 - Evolutionary, any project that falls within the non-shaded area, e.g., Project A (Project Complexity and Risk Level 4 - Transformational), exceeds the Treasury Board-approved Organizational Project Management Capacity Class and requires Treasury Board approval and expenditure authority in order to proceed. Projects that fall within the shaded area, e.g., Project B (Level 2 - Tactical), have an assessed level of complexity and risk within the Treasury Board-approved Organization Project Management Capacity Class and will likely be within the organization's approval limit and be subject to minimal direct Treasury Board oversight.
The organization's project management capacity should be commensurate with the level of risk and complexity of its planned portfolio of projects.
A higher capacity class is not necessarily a better capacity class. If the organization's capacity to manage consistently exceeds the needed capacity given its planned portfolio of projects identified in the organization's investment plan, the organization may be over-controlled. A department or agency should work to maintain appropriate systems, processes and controls for managing its planned projects that support and contribute to achieving value for money and sound stewardship in government project delivery. A high level of project management capacity and the associated costs may not be a suitable investment for an organization that undertakes few large and complex projects and could lead to inefficiencies.
During or following the completion of an assessment, a department or agency may wish to consider changes to existing organizational project management frameworks and practices. Any proposed changes should be measured in terms of the expected costs of implementing, managing and monitoring new associated activities. A department or agency should ultimately work to ensure that its capacity to manage planned projects is commensurate with its portfolio of planned projects over the upcoming minimum five-year period, as identified in its investment plan.
An OPMCA is an evidence-based demonstration of the capacity that a department or agency has to manage its planned portfolio of projects.
An OPMCA is a forward-looking assessment of an organization's capacity to manage and deliver the planned portfolio of projects identified in its departmental investment plan over a minimum five-year horizon. Note that evidence is to demonstrate the organization's capacity to manage and deliver the planned portfolio of projects.
An OPMCA can accommodate organizations that have various approaches to managing their projects.
Some organizations may have different project management frameworks within their various sectors or branches. Other departments and agencies may have specific frameworks that vary based on project type or other project characteristics. Management practices can and should be scaled to reflect the individual project; however, there are common aspects and management principles that should be in place and respected.
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