BBC must build on progress to improve oversight of high-risk projects

• Read the report summary
• Read the report conclusions and recommendations
• Read the full report: BBC critical projects

Report conclusions and recommendations

The Committee concludes that while the BBC has learnt from mistakes such as the failure of its Digital Media Initiative project, "there is still more to do".

It calls on the Corporation now to build on improvements to oversight of its critical portfolio, urging clarity on accountability for specific projects and greater transparency when problems occur.

The BBC's list of critical projects changes over time as new projects start and existing ones are completed.

The March 2015 list containing eight projects funded from the licence fee was the focus of the Committee's inquiry, namely End-to-End digital; W12; Wales Broadcasting House; Newsroom Computer System; MyBBC; E20; Smart, and Aurora.

BBC board must ensure "robust process" on projects

Its Report highlights the importance of getting right proposed changes to BBC governance, identifying the new unitary board proposed by the Government as having a key role in oversight on behalf of licence fee payers.

The BBC's board must ensure there is a "robust process" for deciding which projects are added to the critical portfolio and the Corporation must take steps to clearly define the expected benefits of all projects at an early stage.

Among its other recommendations, set out below and in the attached Report, the Committee says the BBC "should seek regular feedback from staff on the extent to which they feel able to raise concerns".

It should also be "consistent and precise" in specifying single points of accountability for all of its critical projects.

Chair's comments

Meg Hillier, Chair of the PAC, said:

"The BBC's Digital Media Initiative was a costly mistake that wasted nearly £100million of licence fee payers' money.

In the wake of this failure it was vital the BBC rapidly improved its oversight of critical projects and as a Committee we are encouraged by the progress it has made.

However, there is no room for complacency if licence holders are to get full value for money.

A lack of openness within the BBC has in the past negatively affected the way project performance is reported.

If the BBC is to achieve its aim of a more open and honest workplace culture, management must listen to and act swiftly on concerns raised by staff. Clear lines of accountability, on all aspects of critical projects, are essential.

Viewers and listeners paying for BBC services are entitled to know what improvements individual projects are expected to deliver and the Corporation must do more to explain these benefits promptly.

The Government is planning to replace the BBC's current governance arrangements with a single unitary board.

This board will need to be equipped with the right mix of skills to tackle future challenges, including delivering value for money for licence fee payers.

The BBC and the Department for Culture, Media and Sport must keep the interests of those licence fee payers front of mind as proposals move forward."

Report summary

The BBC has strengthened its oversight of and reporting on critical projects since it cancelled its Digital Media Initiative project in 2013 at a cost to licence fee payers of nearly £100 million.

By and large, the BBC is subjecting its critical projects to more effective scrutiny, underpinned by more frequent and timely reporting to the Executive and the BBC Trust.

There is, however, more work for the BBC to do: to be clear at an early stage about what projects will contribute to improved services for viewers and listeners; to encourage openness and transparency when problems arise; and to ensure there is no scope for confusion over who is accountable for delivering each project.

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

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