Organisational Capability in ICT Investment

ICT Reform Agency Capability Initiative

The Government introduced the Agency Capability Initiative to improve agencies’ organisational capability to commission, manage and realise benefits from ICT-enabled investments.

This initiative is part of the Government’s response to the recommendations of the Review of the Australian Government’s Use of ICT and aims to strengthen governance of the lifecycle of ICT investment including business domain activities such as benefits realisation. 

The initiative applies to Financial Management and Accountability Act 1997 (FMA Act) agencies with an annual ICT spend over $2 million. The Department of Finance and Deregulation (Finance) also encourages agencies with an ICT spend less than $2 million to consider the benefits of improving their organisational capability.

Agencies are using the Portfolio, Programme and Project Management Maturity Model (P3M3®) as the common methodology for assessing their organisational capability.

Improving Organisational Capability

By 30 June 2011, agencies conducted an initial assessment of their portfolio, program and project management capability, determined the target levels of organisational capability appropriate for their agency, and developed a capability improvement plan to reach those targets.

Agencies are implementing their capability improvement plans. They will complete their next P3M3 assessment, to compare their actual capability to their target capability, and report the results to Secretaries’ ICT Governance Board, by 30 September 2012.

From September 2012, agencies are required to complete regular P3M3 assessments of their portfolio, program and project management capability and report to Secretaries’ ICT Governance Board on progress against their capability improvement plans.

Agencies must obtain independent validation of their current capability before undertaking major ICT projects. The Government considers agencies’ capability as part of the ICT Two Pass Review process to strengthen the link between policy formulation and implementation.


The Secretaries’ ICT Governance Board endorsed P3M3 as the common methodology for assessing the organisational capability of agencies to commission, manage and realise benefits from ICT-enabled investments.

P3M3 provides a framework for agencies to assess their capability in portfolio, program and project management and develop targeted improvement plans.

P3M3 is a globally recognised capability maturity model covering portfolio, programme and project management. The UK Cabinet Office owns P3M3 and also publishes other relevant standards that are in general use across the Australian Government including PRINCE2, MSP and ITIL.

Caution is required when Interpreting P3M3 Maturity Levels.

Further information on P3M3 including the P3M3 Model is available from the Official P3M3 Website [External Site].

P3M3 Assessment Consultancy Services

Agencies may procure P3M3 assessment consultancy services from APMG PPM Accredited Consulting Organisations (ACOs) qualified to undertake P3M3 assessments. APMG-Australasia maintains a list of these ACOs on its website PPM Accredited Consulting Organisations [External Site].

Further Information

Further information is available from the Improve Agency Capability Community of Practice on GovDex ( Site. GovDex provides a secure online environment for Finance and FMA Act agencies to share information relating to the implementation of P3M3.

For advice on the implementation of P3M3, please email the Capability Assessment mailbox.

P3M3® is a Registered Trade Mark of the UK Cabinet Office.

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