Rescinded [2010-12-09] - Standard for Organizational Project Management Capacity

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Note to reader

In June 2007, Treasury Board Ministers approved the Policy on the Management of Projects. This policy replaces the Project Management Policy, the Policy on the Management of Major Crown Projects, and the Project Approval Policy for departments and agencies listed in Section 2 of the Financial Administration Act. This policy is a significant change in how government manages projects. As a result, Treasury Board Secretariat is adopting a phased implementation approach, starting in 2007, that will begin with a group of departments that have agreed to participate in a pilot. Following this pilot, groups of departments will be brought on board so that, by April 1, 2011, departments and agencies will have the systems and processes in place to meet the policy requirements.

1. Effective date

1.1 This standard takes effect on June 7, 2007.

1.2 This standard is to be phased in over a four-year period in conjunction with the Policy on Investment Planning - Assets and Acquired Services.

1.3 Departments will have until April 1, 2012 to implement this standard.

2. Application

2.1 This standard applies to all departments as defined in section 2 of the Financial Administration Act, unless specific acts or regulations override it.

3. Context

3.1 Deputy heads are accountable to their respective Minister and to Treasury Board for the effective management of projects in their organization. This standard establishes the mandatory assessment process that Treasury Board has approved for government-wide use. The Treasury Board Policy on the Management of Projects requires deputy heads to ensure that their organization is accurately assessed to determine its level of project management capacity for the purposes of project approval authority.

3.2 The nature of and demand for project management capacity in departments varies considerably across the government. Not every department needs to develop extensive capacity to manage projects. A department's and government's investment in developing and maintaining project management capacity is a direct function of the benefits that can be achieved by realizing outcomes and risk management in individual projects. This includes stronger program and investment portfolio management as well as consideration of the investment and maintenance costs associated with project management capacity.

3.3 Projects are implemented to acquire or access assets or services and must be managed in a manner that is appropriate in view of the nature of the assets or services being created or established through the project.

3.4 The Organizational Project Management Capacity Assessment Tool provides the basis for determining the level of organizational capacity to manage projects and will assist in identifying areas of capacity that should be improved or maintained.

3.5 This standard is issued pursuant to section 7 of the Financial Administration Act.

3.6 This standard is to be read in conjunction with the Policy on the Management of Projects, the Policy on Investment Planning – Assets and Acquired Services, and the Standard for Project Complexity and Risk.

3.7 Treasury Board has provided to the Secretary of the Treasury Board of Canada the authority to issue such operational standards as necessary.

4. Requirements

4.1 Departments and agencies submitting an investment plan to comply with the Policy on Investment Planning, must demonstrate, through assessment, organizational project management capacity in order to exercise the project approval authorities defined in Appendix A of the Policy on the Management of Projects.

4.2 Assessments are to be completed using the Organizational Project Management Capacity Assessment Tool*.

Note: Deputies with limited program expenditures intended for projects should assess the cost (resources) needed to establish project management regimes appropriate for the department's business activity.

4.2.1 The Organizational Project Management Capacity Assessment Tool* rates the level of organizational capacity to manage projects across 4 levels by evaluating criteria in each of the following project knowledge areas:

  • Organizational integration
  • Core project management
  • Supporting project management

4.3 Departments and agencies are required to monitor the use and effectiveness of the delegated project approval levels and their implementation within the department's management control framework through the following:

  • Internal audit
  • Periodic Management Accountability Framework (MAF) updates
  • Revised assessments to support increased authorities
  • Submission of the department's investment plan

4.4 When there is no evidence, nor business case, supporting the development of a departmental project management capacity, Treasury Board has limited the expenditure authority for project approval to $1 million.

Further information

The Treasury Board Secretariat will maintain up-to-date information on best practices on its Web site. Additional background information supporting the implementation of this standard will also be available on the Treasury Board Secretariat's website.

5. References

6. Enquiries

Please direct enquiries about this standard to your department's headquarters. For interpretation of this standard, departmental headquarters should contact:

Investment, Project Management and Procurement Policy Division
Treasury Board Secretariat
300 Laurier Ave. West
Ottawa ON K1A 0R5
Telephone: 613-957-2487
Facsimile: 613-957-2405