Guidance for Senior Responsible Officials
Assurance Research Series 02
The DTA engages across the digital project lifecycle to support, advise and coordinate the Government’s digital and ICT-enabled investments. With visibility of digital projects across government, the need became evident for guidance on the effective design, composition and operation of digital project governance boards. Reviews of digital project successes and failures routinely place significant emphasis on the performance of governance arrangements, so this guidance is critical to ensure the right blend of structure, capability, culture and information flows are established to steer a digital project to successful delivery.
To provide this guidance, the DTA collaborated with researchers from the University of Queensland (UQ) to elicit the most recent research and best practice. The DTA has found this combination of research and experience is invaluable for providing evidencebased,
practical guidance, and most importantly, having a positive impact.
Inputs for this report included:
Report findings were validated through a workshop session with DTA and SROs.
This guidance addresses the aspects of structure, people and information required to equip an effective digital project governance board.
Specifically, the report:
The primary audience for this guidance is:
Corporate boards have moved away from an emphasis on stakeholder representation to skills based composition. Project boards should also look past stakeholder representation to consider the skills and capabilities that members contribute. Board members should include external members, and be chosen for their authority, expertise, experience, status and connection (11), focusing on people who:
Project boards rarely have the time or luxury to be able to develop complete knowledge of all aspects of any project. Some literacies can readily be taught, helping board members know what to look for and the questions to ask. Project board training can help rapidly develop core literacies.
Other board member capabilities are developed through years of experience. We differentiate between SROs’ and board members’ digital project, (Table 4) the collective experience the board should contain, (Table 5) and the culture, attitude and behaviours that needs to be established for a digital project board to be effective.
Foundational literacy all project board members should have:
Benefits and outcomes
Understanding of benefits management processes, and the relationship between outputs and outcomes, benefits and value
Communication in the context of change
Understanding the importance of a project narrative, creating a culture of
transparency, stakeholder identification, constructive conflict and feedback loops
Project management foundations
Understanding of key project management concepts, giving the board the ability to question aspects of the project lifecycle, critical path, earned value, burn rate and baseline
The expertise needed on the Board should be guided by key areas of risk, both enterprise and project delivery.
Common expertise requirements for Digital Project Boards:
Business expertise
Understanding of the business, impacts and change required for end users, allowing the board to maintain sight of the business logic of the project
Operations expertise
Understanding of the operational environment to ensure the solution is integrated,
maintainable and sustainable within the existing IT applications portfolio
Digital project management expertise
Understanding of digital projects, their lifecycle, risks, ideally with experience in a similar type of project (e.g. AI, Software as a Service (SaaS), risk tier)
Interpersonal skills and social capital
Strong networks and relationships that support negotiation, decision-making, issue resolution, stakeholder management, effective communication and resourcing5,
Digital, data and cyber expertise
Depending on the project type and stage, deep technical expertise may be required
Legal and policy
Depending on the project type and stage, regulatory and policy expertise may be required
Procurement and contract management
Depending on the project type and stage, expertise in procurement and contract management may be necessary
Independence
Balancing the need for vested interests, ensuring there is someone who can view the project and its progress objectively and independently
Supplier expertise
Depending on the project, experience and knowledge of the product, implementation approach and supply chain
Interdependencies
Knowledge of areas the project has interdependencies with, for example, resourcing, systems integration
Employee/customer experience
Expertise in ensuring a solution is well suited to the needs of the users of project deliverables
Change management expertise
Experts in communicating and designing organisational change, reducing resistance and increasing uptake of change
Financial expertise
Depending on the complexity, size, risk and procurement strategy of the project
Attitudes and behaviours required on project boards:
Skin in the game
Members should have a genuine interest, commitment and ownership of the project’s success28
Psychological safety
Boards need to foster a no-blame environment where people feel safe with constructive conflict, raising ideas and escalating issues (23, 41)
“Can do” agency
Board membership is not a passive role. Members should take action to ensure they have the right information to support decisions and proactively identify strategies that enhance project success (23)
Time commitment
Board members often underestimate the time involved. Members must ensure they are suitably informed, attending meetings and prepared to support decision-making(11, 23, 42)
Courage
Courage to stop a project, escalate risks or reset the project if the project does not have sufficient business justification and/or delivery confidence is low (1, 25)
Attendance
Continuity in core board membership facilitates historically informed decision-making. Use of deputies or proxies should be avoided as it signals a lack of commitment, dilutes accountability and can delay decision-making (11).
Members should not attend just to report to others (28).
Decision expediency
Boards need to make decisions escalated to them in a timely manner, possibly despite incomplete information. Decisions should be clear and prioritise action (23, 43).
Value-focused
Boards should suspend self-interest and operate from a position of what is best for the organisation and project, optimising value from the project investment
Empowering
The project board can make the decisions it needs to so that the project is empowered to deliver
Humility
Openness to learning and adaptation – seeking robust advice from independent advisors and project assurance, seeking out lessons learned from similar projects, listening to user and reference groups, acting on recommendations (1, 44).
Under this Policy the DTA will only identify and record instances of 'serious underperformance', which means:
This approach is consistent with the Commonwealth Procurement Rules, including Rules 4.5 and 10.17.
If:
the Seller will be included in the CSU Register as having 'confirmed serious underperformance' status.
The Commonwealth Procurement Rules (CPRs) paragraph 4.5 state:
Price is not the sole factor when assessing value for money. When conducting a procurement, an official must consider the relevant financial and non-financial costs and benefits of each submission including, but not limited to the:
[…]
c. potential supplier's relevant experience and performance history.
Further, CPR paragraph 10.17 states:
A relevant entity may exclude a tenderer on grounds such as bankruptcy, insolvency, false declarations, or significant deficiencies in performance of any substantive requirement or obligation under a prior contract.
The DTA has prepared template clauses for:
that Agencies are strongly encouraged to include in their procurement documentation to make it clear to Sellers that Agencies can:
Consultation Fact Sheet
The Digital Transformation Agency (DTA) is seeking feedback from digital sellers on the proposed Digital Seller Underperformance Policy (DSUP). This Policy is designed to support better outcomes from strategically significant government digital contracts by encouraging strong performance and enabling fair, transparent management of serious underperformance.
We have designed the DSUP to recognise that performance challenges on digital contracts can arise from many factors.
This Policy is not about penalising sellers. It's about:
The DSUP will apply to Strategic Digital Contracts, valued at $4 million or more, or other contracts determined to be strategically significant by the DTA.
The DSUP outlines a process for:
The CSU Register will be accessible only to authorised Australian Government buyers and will not prevent sellers from being awarded future contracts — but it will help buyers make informed decisions.
Your insights will help ensure the Policy is:
We want to hear from you — whether you're a sole trader, small to medium enterprise, or large seller — to help shape a Policy that works for the whole market.
We are also interested in seller and stakeholder views on whether the seller underperformance policy should be applied more broadly to a wider range of contracts. We are interested in feedback on:
After the consultation period closes:
The DTA is the Australian Government's trusted adviser on digital transformation. This includes supporting and monitoring digital sourcing initiatives across the Australian Government, such as the Digital Marketplace Panel 2.0.
Australian Government agencies have spent approximately $16.9 billion on digital products and services contracts across DTA marketplaces as at 31 July 2025.
The DTA has whole-of-Government responsibility for managing strategic coordination and oversight functions for digital projects. This policy initiative is part of DTA's role...
The DTA also has oversight of and reports on whole-of-Government digital project performance. The Major Digital Projects Report provides an annual update on the status of major digital projects and sets out how the DTA is working to create the conditions for success through ongoing reforms and improvements.
The Digital Transformation Agency (DTA) is seeking feedback from digital sellers on the draft Digital Seller Underperformance Policy (DSUP). This Policy is designed to support better outcomes from strategically significant government digital contracts by encouraging strong performance and enabling fair, transparent management of serious underperformance.
DRAFT – November 2025
After completing the self-assessment, consider developing an action plan to address areas for improvement and build on strengths. For each action, assign a clear owner and set realistic due dates to ensure accountability. The action plan should be reviewed at regular intervals by the Board to track progress, adapt to changing needs, and maintain momentum.
A well-structured action plan might include:
If your self-assessment highlights that decision-making is not always timely or that there's confusion about which decisions should be made by the board, the project team, or other forums, an effective action could be:
Develop and implement a lightweight decision model that clarifies what decisions live where, who owns them, and when to escalate. Align this model to your Terms of Reference (ToR) and the organisation's governance environment.
High-performing boards make it obvious what decisions live where, who owns them, and when to escalate. By introducing and regularly reviewing a simple decision model, you help ensure governance remains adaptive and responsive, rather than "set and forget."
To use the self-assessment, a numerical rating is given for each row, giving an overall rating between 30 and 150.
| Category | Number of Questions | Maximum Score (1–5 scale) |
|---|---|---|
| Project vision and purpose | 2 | 10 |
| Structure | 5 | 25 |
| Project information & communication | 4 | 20 |
| Decision-making | 3 | 15 |
| Board capability & composition | 4 | 20 |
| Project benefits & risks | 5 | 25 |
| Project culture | 7 | 35 |
| Total | 30 | 150 |
An average score over 100 usually means your board is relatively effective. However, it's important to look deeper.
If you see consistently low scores in any group of questions, that could signal significant risks for your project. The scores aren't weighted, and some areas of the self-assessment may be more important than others depending on your project and where you are in the lifecycle.
Self-assessment score: 30 – 59
The board is struggling across most areas. Immediate, focused action is required to address weaknesses and build core governance capability.
Self-assessment score: 60 – 99
The board is making progress, but there are still significant areas for improvement. Use this as a springboard for targeted development and capacity building.
Self-assessment score: 100 – 119
Overall, the board is functioning well, with most practices in place. Use scoring across key dimensions to target efforts to achieve best practice.
Self-assessment score: 120 – 150
The board is a model of best practice, demonstrating high performance and a proactive approach to governance and improvement. The board also continually improves its own governance—using evidence and feedback to refine its charter, composition, cadence and reporting—rather than treating governance as 'set and forget.'
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 1. I am confident the project is delivering on our current strategy | 1 | 2 | 3 | 4 | 5 | |
| 2. The board is providing a clear and consistent vision of what the project is delivering and why | 1 | 2 | 3 | 4 | 5 |
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 3. The scope and authority of the board is clear, appropriate and effective | 1 | 2 | 3 | 4 | 5 | |
| 4. I am clear on what my roles and responsibilities are on the board | 1 | 2 | 3 | 4 | 5 | |
| 5. We have effective communication with other governance forums to remove roadblocks and optimise value | 1 | 2 | 3 | 4 | 5 | |
| 6. We have the appropriate level of authority to make decisions and empower the project team to improve the project's achievability, outcomes and benefits | 1 | 2 | 3 | 4 | 5 | |
| 7. I am empowered to make decisions on behalf of the area I represent | 1 | 2 | 3 | 4 | 5 |
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 8. I am confident in the project's status reporting and communication | 1 | 2 | 3 | 4 | 5 | |
| 9. We obtain appropriate and objective advice to inform risk-based, value-adding decision-making | 1 | 2 | 3 | 4 | 5 | |
| 10. The board actively ensures the various stakeholders who are involved or impacted by the project are appropriately informed and involved | 1 | 2 | 3 | 4 | 5 | |
| 11. The board gets appropriate and timely insights from the people who will be impacted by using or supporting the solution | 1 | 2 | 3 | 4 | 5 |
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 12. Our decision making is timely | 1 | 2 | 3 | 4 | 5 | |
| 13. Our decisions are based on optimising value and minimising negative impact | 1 | 2 | 3 | 4 | 5 | |
| 14. We consider the broader ecosystem in which the project exists and interacts with other organisational initiatives and priorities | 1 | 2 | 3 | 4 | 5 |
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 15. The SRO demonstrates the necessary knowledge, skills, and experience to effectively lead and influence the project | 1 | 2 | 3 | 4 | 5 | |
| 16. The board has the appropriate skills, experience and capability to govern this project | 1 | 2 | 3 | 4 | 5 | |
| 17. I have the skills, knowledge and experience I need to contribute to the project's governance | 1 | 2 | 3 | 4 | 5 | |
| 18. The SRO role is stable and consistently occupied by a committed and engaged individual | 1 | 2 | 3 | 4 | 5 |
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 19. Project benefits have been clearly articulated in foundational project artefacts, and we regularly review progress on realising benefits | 1 | 2 | 3 | 4 | 5 | |
| 20. We have a clear line of sight from the project deliverables to the benefits to our organisation | 1 | 2 | 3 | 4 | 5 | |
| 21. When we decide on changes, for example a reduction in scope, we consider the impact on benefits | 1 | 2 | 3 | 4 | 5 | |
| 22. I am confident the project will effectively deliver value to our organisation(s) and its stakeholders | 1 | 2 | 3 | 4 | 5 | |
| 23. I am confident that our collective work is reducing the overall risk of the project | 1 | 2 | 3 | 4 | 5 |
| Question | Low (1) | Med-Low (2) | Med (3) | Med-High (4) | High (5) | Area Total |
|---|---|---|---|---|---|---|
| 24. Members of the board are turning up and actively involved in the project's governance | 1 | 2 | 3 | 4 | 5 | |
| 25. We have a culture of constructive conflict and "no surprises" | 1 | 2 | 3 | 4 | 5 | |
| 26. My voice is heard in the project board | 1 | 2 | 3 | 4 | 5 | |
| 27. Members are suspending self-interest in the project board | 1 | 2 | 3 | 4 | 5 | |
| 28. I am suspending self-interest in the project board | 1 | 2 | 3 | 4 | 5 | |
| 29. We have the courage to stop the project or activities that are not adding value or creating unnecessary risk | 1 | 2 | 3 | 4 | 5 | |
| 30. We invite independent critique of the project to ensure we are addressing risks and maximising value | 1 | 2 | 3 | 4 | 5 | |
| Total score | ||||||