New Jersey Department of Labor

New Jersey Department of Labor
Unemployment Insurance Modernization Program Strategic Plan July 2003

Contents Executive summary 3 How have we reached this point? 22
The purpose of UI Modernization 29 The program of work 37 Organizing the program 75 Challenges to delivering UI Modernization 106 Under separate cover… Appendix A: Project outlines Appendix B: Timeline options for NJ SUCCESS build Appendix C: Use cases Appendix D: RFP crosswalk Appendix E: Program risks

EXECUTIVE SUMMARY NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the integrity of the Trust Fund To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms How have we reached this point? The purpose of UI Modernization The program of work Organizing the program Challenges to delivering UI Modernization

The strategic plan - background
Executive Summary… The strategic plan - background This document, the strategic plan, is the last in a series of planning deliverables for modernizing unemployment insurance (UI). As part of this effort, we have previously delivered: Baseline description A review of current UI processes and technology Business process conceptual design The UI business processes needed for the future state Technical architecture and interfaces The technical architecture (and interfaces) needed to support the future business processes This last piece, the Strategic Plan, describes a proposed plan, timeline, resources, organization and associated challenges for the UI Modernization program. Crucially, this strategic plan also defines objectives and measures for program success. In the last chapter, we add critical success factors for UI Modernization which define the conditions we must create to give the program the best chance of successful delivery. This executive summary sets the stage for the plan, the activities, and approaches needed for UI Modernization to become a resounding success.

details needed for achieving
Executive Summary… Measuring success This strategic plan differs from many others because it emphasizes Development of objectives and measures Monitoring the delivery of value (business benefit), using the measures Objectives and measures provide a more focused and targeted communication of our business needs than a traditional scope description and requirements. This will be of benefit to internal stakeholders as well as to vendors. Vision Vision Vision Vision Strategic Plan Strategic Plan Measurements Determining objective fulfillment The view of the future Requirements System and Process details needed for achieving the Objectives The view of the The view of the The view of the future future future Ideas Ideas Ideas Ideas Technical Technical Key points from Key points from Key points from Key points from Architecture Architecture the Vision the Vision the Vision the Vision Principles Principles Principles Principles Business Processes Business Processes Key points Key points Key points Key points affirmed by the affirmed by the affirmed by the affirmed by the Project Team Project Team Project Team Project Team Objectives Objectives Objectives Objectives Focused Focused Focused Focused principles principles principles principles Measurements Measurements Measurements Determining Determining Determining objective objective objective fulfillment fulfillment fulfillment Requirements System and Process details needed for achieving the Objectives

Strategic plan requirements
Executive Summary… Strategic plan requirements Early on, we articulated a number of conditions, or requirements, for UI Modernization that impact the strategic plan, the recommended timeline and estimated costs: The program should follow best practices. The best practices agreed are: Using a rapid application development (RAD) methodology Implementing a Program Management Office to manage the delivery of the whole portfolio of UI Modernization projects The plan should include projects to deliver early value and thereby maintain program momentum. This condition is met by the foundational projects (see ‘the program of work’ chapter) The program should follow a graduated rollout, running in parallel the current UI systems and the new system, the New Jersey State Unemployment Compensation Claimant and Employer Service System (NJ SUCCESS) The proposed ‘geographic’ rollout approach supports this condition (see the interfaces report for more information) We should use State resources as much as possible All the priority foundational projects will be developed by State staff Knowledge transfer and role shadowing will be part of the required approach to NJ SUCCESS build, to be delineated in the RFP The design, development, testing and implementation of NJ SUCCESS will require the services of a vendor – with an anticipated start date of 10/1/04

Strategic plan assumptions
Executive Summary… Strategic plan assumptions The strategic plan approach, recommended timescales and indicative resource requirements rely on the following key assumptions being met: Our team has the knowledge and experience to participate in appropriate management and technical positions All vendors will provide knowledge transfer and hand over development responsibilities to State employees over the balance of their assignments Approach to hand over to be defined as part of procurement strategy Approach will take into account impact on any system warranty and overall risk We will access funding (through Reed Act monies) to accomplish the modernization effort We will utilize contractors to supplement State staff - ongoing We will successfully accomplish change management in parallel with developing the new IT software We will use OIT as an internal IT vendor (particularly for the foundational projects)

Scope of the UI Modernization program
Executive Summary… Scope of the UI Modernization program UI Modernization is one of the largest initiatives ever undertaken by the Department of Labor. The scope of UI Modernization is broad. It includes: A complete, detailed design and implementation of improved unemployment insurance business processes Creation of a new benefits IT system (NJ SUCCESS) Change management for the new processes Organizational and cultural changes Changes to interfaces with many related program areas Workforce New Jersey programs, State Plan Disability, Employer Accounts, etc

UI Modernization recommended timeline
Executive Summary… UI Modernization recommended timeline Phase 1 Phase 2 Phase 3? 2003 2004 2005 2006 2007 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FOUNDATIONAL PROJECTS (see slides 49 to 55) ODS IVR IVR, Phase 2 DIGITAL RECORDING EPAYMENTS NJ SUCCESS PROCURE, BUILD & ROLL-OUT (see slides 56 to 65) RFP & PROC’MT STRATEGY VENDOR BID EVALUATION EXTERNAL INTERFACES CHANGE MGT USE CASES PREP & DESIGN* DEVELOPMENT & TESTING* (RAD – ITERATIVE) * Indicative only; to be confirmed with implementation vendor TRAINING & ROLL-OUT* ORG & SKILLS REVIEW HR REVIEW HR PROJECTS UI BUSINESS CHANGE PROJECTS (see slides 66 to 68) ORG CHANGE PROJECTS CUSTOMER SERVICE IMPROVEMENT PROJECTS (E.G., EMPLOYER TRIAGE, TRAINING, ECORRESPONDENCE…) CULTURE CHANGE PROJECTS (E.G., LABOR-MANAGEMENT WORKSHOPS, CAREER PATH DEFINITION…) STATE IT BUSINESS PREPARATION (see slides 67 to 71) IT SKILLS DEVELOPMENT (FOR DESIGN, DEVELOPMENT & MAINTENANCE OF NJ SUCCESS) IT KNOWLEDGE TRANSFER (VENDOR TO STATE) AGREE SUPPORT ORG’N PROGRAM MGT & ASSURANCE VENDOR CONTRACT MGT, RESOURCING, CHANGE MGT, LEAD DELIVERY ASSURANCE PROGRAM MANAGEMENT (see slides 72, 86 to 103) BUSINESS DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, BUSINESS ARCH DESIGN & ASSURANCE IT DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, IT ARCHITECTURE DESIGN & ASSURANCE, HARDWARE AND SOFTWARE PROCUREMENT ONGOING OPERATIONS, SYSTEM MAINTENANCE AND PARALLEL INITIATIVES

The program of work (page 1 of 2)
Executive Summary… The program of work (page 1 of 2) UI Modernization consists of five workstreams: Foundational projects NJ SUCCESS procure, build and roll out UI business change projects State IT business preparation projects Program management The first four workstreams are logical groupings of projects. These projects cover the major activities required for the subsequent phases of UI Modernization. Underpinning these four workstreams is the overall program management workstream. This comprises the key set activities required to ensure that all the components of the UI Modernization program are working in sync – i.e., that requirements are met, to deliver our objectives and ultimately to deliver our vision. Program management tasks will include program control, leadership and providing support and quality assurance to every project. The PMO will also ensure that change is pro-actively planned, so that transitions are smooth for all stakeholders involved. Establishing an effective program management workstream is crucial to maintaining control of our own destiny.

The program of work (page 2 of 2)
Executive Summary… The program of work (page 2 of 2) Foundational projects are IT development projects, separate from the core NJ SUCCESS system, which are planned to be delivered by State teams. These projects include digital recording (which is intended to provide improved supervisory review and staff training and therefore better customer service); direct deposit option for UI benefit payments; creation of an operational data store, data dictionary, data warehouse and IVR consolidation. As currently planned, State staff will develop and implement key priority foundational projects before the construction of the NJ SUCCESS system. NJ SUCCESS procure and build includes the development of the RFP, issuing the RFP, procurement, and award. A key assumption is that we will partner with a vendor that will adopt a Rapid Application Development (RAD) approach to building NJ SUCCESS. We will retain control of delivery and provide resources to enable truly successful knowledge transfer. UI business change projects will implement culture, organization and customer service improvements. Some projects will be independent of the IT development workstreams; others focus on capitalizing on IT improvements. These projects will run over the lifetime of the UI Modernization program. State IT business preparation projects will ensure that we, the State, have the skills, organization and capacity to partner with the vendor and to take over the system when it is in production. These projects will run over the lifetime of the UI Modernization program.

Recommended timeline highlights
Executive Summary… Recommended timeline highlights Program Management Office set up and implemented by 9/1/03 NJ SUCCESS RFP ready for issue by 02/28/04 NJ SUCCESS vendor starts by 9/30/04 NJ SUCCESS designed, developed and ready for a phased implementation by 9/30/2006 Priority foundational projects: most completed by 9/30/04 4 operational data store (ODS) projects 2 of the 5 IVR projects epayments (probably direct deposit of benefit payments) implementation of digital recording UI business change projects ongoing through the implementation of NJ SUCCESS State IT business preparation projects We can achieve this timetable only if the assumptions previously listed are followed

Executive Summary… Program governance The UI Modernization program will require strong, pro-active program governance to ensure that all the projects together continue to deliver to our vision and objectives. UI Modernization will require three levels of governance: Strategic level Program Steering Committee Program Sponsor Director of UI DOL CIO Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Technical Architect Program level Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream State IT business preparation Project level Projects Projects Projects Projects

Strategic level program governance roles
Executive Summary… Strategic level program governance roles Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Program Steering Committee Program Sponsor Director of UI Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream NJ IT workstream Projects DOL CIO Technical Architect Program Sponsor role: - Has overall responsibility for realizing the benefits of the program within the specified budget - Demonstrates a strong commitment to making the change happen - Identifies the implications of business strategy changes on the program - Resolves problems and takes decisions - Authorizes minor scope changes - Integrates with other programs and key stakeholders - Approves the project plans Program Steering Committee role: - Advises on departmental policy/issues and fit of solution (liasing with IT Governance Board as appropriate) - Approves deliverables and vendor payments - Resolves issues that cannot be resolved through prior escalation processes - Authorizes major scope changes that impact on realization of benefits - Provides a Quality Assurance function - Provides guidance to the program

Steering Committee members have specific oversight roles
Executive Summary… Steering Committee members have specific oversight roles Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Program Steering Committee Program Sponsor Director of UI Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream NJ IT workstream Projects DOL CIO Technical Architect Steering Committee oversight roles: Overall Deputy Commissioner, Asst. Commissioner, Income Security Budget & contract Director and Chief Financial Officer, Accounting Technical design Department CIO UI business design Assistant Director of UI Operations Assistant Director of Programs, Appeals and Quality DDU design Asst. Commissioner, Disability Services Security design Director, Office of Internal Audit Key partners: Asst. Commissioner, Workforce NJ Director, Employer Accounts Asst. Commissioner, Labor Planning & Analysis OIT Chief of Staff Director of Human Resources

Program level program governance…
Executive Summary… Program level program governance… Program Steering Committee Program Sponsor Director of UI DOL CIO Program Manager role - Responsible for ensuring the program is delivered - Liases with key stakeholders - Ensures that all projects within the program remain integrated and aligned - Ensures that appropriate resources are made available to the program - Reviews progress, risks & issues with Project Managers - Reports progress & escalates issues as defined, to Sponsor & Steering Committee - Facilitates all essential events - Intervenes where necessary Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Technical Architect Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream State IT business preparation workstream Projects Projects Projects Projects

… supported by a delivery assurance group (the PMO)
Executive Summary… … supported by a delivery assurance group (the PMO) Program Steering Committee Program Sponsor Director of UI DOL CIO Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Technical Architect Program management office (PMO) Technical & Business Architects Program Management Executive reporting NJ IT workstream Guardians of Modernization vision Schedule management Identification & management of Issue reporting project dependencies Communication Change control Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream Projects Project delivery checkpoints strategy Develop win/wins Risk reports Standards management Engage key Team management & support Technical assurance stakeholders Vendor performance analysis Projects Projects Projects Quality Assurance Build trust and commitment Project control processes Test planning & oversight Vendor, contract & work pkg management processes Successful vendor management requires active ‘relationship management’ that spans all stages in the program lifecycle

UI Modernization challenges
Risk of failure is inherent in a project of this magnitude. Changing priorities, fluid funding, and personnel changes at the executive level always put a program at risk, but the major challenges we believe we face in UI Modernization include: Locating experienced and skilled staff to manage an effort of this size Ensuring that resources with the right knowledge and skills are participating with and building the IT projects Overcoming organizational resistance to change resistance to how we deliver the program as well as to implementing NJ SUCCESS Ensuring that vendor(s) understand and are aligned to program objectives Maintaining commitment to change throughout the organization over the next 3 years Delivering rapidly and effectively within sometimes bureaucratic decision making processes Success of UI Modernization will be most likely when the right people with the right skills are in the right role.

Get the resourcing right
At this stage of UI Modernization, we have the opportunity to make preparations that many programs fail to invest in: getting the resources right, up front. NJDOL staff are experienced individuals at UI operational management activities. However the skills required for a complex IT enabled business change program are different. Staffing the program too highly with people who have not delivered a complex IT enabled business change program is likely to cause: less effective delivery, due to staff requiring learning curve activities an increased error rate increased likelihood of unrecognized errors impacting the quality of deliverables / functionality leading to undiscovered rework and program slippage a content and decision vacuum during critical early stages i.e., weak leadership on the technical and business architectures increased risk of the NJ SUCCESS vendor effectively driving the program rather than State

Now let’s make it happen!
Executive Summary… Now let’s make it happen! Over the past 7 months - developing new UI processes, defining a new technical architecture and now, building this plan – we have built great positive momentum. As the name of the new benefits system – NJ SUCCESS - conveys, we have committed to build a modernized unemployment insurance business that meets the needs of both customers and employees. We would be suggesting another name for the system if this commitment were not absolute. We hope that you enjoy reading the rest of this plan to deliver our vision for UI Modernization.

Contents Executive summary 3 How have we reached this point? 22
The purpose of UI Modernization 29 The program of work 37 Organizing the program 75 Challenges to delivering UI Modernization 106 Under separate cover… Appendix A: Project outlines Appendix B: Timeline options for NJ SUCCESS build Appendix C: Use cases Appendix D: RFP crosswalk Appendix E: Program risks

HOW HAVE WE REACHED THIS POINT?
NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the integrity of the Trust Fund To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms How have we reached this point? The purpose of UI Modernization The program of work Organizing the program Challenges to delivering UI Modernization Background to UI Modernization Approach to developing the strategic plan

Background to UI Modernization
How have we reached this point? Background to UI Modernization Simply put, our mission in the Division of UI is to provide temporary wage replacement to support workers who lose their job through no fault of their own. To accomplish this mission, we use processes, technologies, cultural tenets and organizational structures that in many cases are nearly 30 years old. In 2002, the Division decided it was time to make some significant changes. There were a number of drivers: The existing benefits system (LOOPS) was built in 1975 and has gone well beyond the typical life of a system of this type The existing business processes were gated by the capabilities of the IT systems Responding to legislative mandates was becoming more difficult Customer expectations of customer service were (and are) ever increasing e.g. reducing the wait time on phone calls Federal (Reed Act) monies became available – and could be used to revamp administrative capabilities

Starting the UI Modernization Program
How have we reached this point? Starting the UI Modernization Program With this mission in mind, the UI Division decided to launch the UI Modernization Program. The first phase of this program (the planning phase) has allowed us to step back, rethink, develop a blueprint and outline a plan for modernization. This planning phase has addressed both the business processand the technical perspectives of modernization and now concludes with a strategic plan for moving confidently and efficiently toward those goals. Steps in the planning phase have included: Developing an understanding of the current processes and systems identifying areas where we could improve processes or technology in the short run and implement these “quick wins” Reengineering the UI business processes for the future through a consensus process that involved participants from across the entire UI organization Developing a technical architecture that would support these future UI business processes Producing a strategic plan for the remaining steps needed to achieve UI Modernization e.g. system development RFPs, cultural changes, etc.

Approach to developing the strategic plan (page 1 of 3)
How have we reached this point? Approach to developing the strategic plan (page 1 of 3) The Strategic Plan is the last of the planning phase steps for UI Modernization. It is built on key information developed in the first three steps - and a planning approach that defines a clear path to success and has six linked components: Vision Ideas Principles Objectives Measurements Requirements

How have we reached this point? Approach to developing the strategic plan (page 2 of 3) By building from vision to measurements (and ultimately through to requirements in the RFP stage), we have been able to define the business processes, the technical architecture and the remaining steps (the Strategic Plan) needed for UI Modernization.

How have we reached this point? Approach to developing the strategic plan (page 3 of 3) Vision – the vision defines the future UI by describing, in broad terms, the key attributes and stakeholder characteristics for our claimants, employers, and employees. Key Ideas - using the vision and the external and internal interviews, we identified key ideas. Some of these include: Revolutionary customer service Partnership with the workforce community A stable work environment Professionalism and respect to our customers and fellow employees Principles - an affirmation of a key idea at a greater level of detail. An example: Make the customer experience easy, efficient and informed – so that each customer can make the right choices for themselves (e.g., access, payment and correspondence methods) These principles helped to direct and define both the business processes, technical architecture and the program objectives Objectives and measurements - through follow-up sessions, the vision and principles were used to identify the key objectives and their corresponding measurements. The objectives (based on the principles) provide the actions needed to achieve the vision. An example of one of our objectives and its corresponding measurement is: Objective: Get accurate data from the start and reuse it to avoid re-keying information Measurement: 100% of all data must be validated before it is entered into the system Requirements - these are the details needed to fulfill the objectives. For example: Requirement: the system must capture all claimant information in a case folder Requirement: the case folder is available to all UI employees having appropriate security

Benefits of this approach
How have we reached this point? Benefits of this approach Some key benefits arise from the ‘vision to objectives’ approach: All objectives have discernable and quantifiable measurements All objectives support fulfillment of the vision All requirements will be linked to specific objectives We will continue this approach when writing the RFP This approach has also allowed us to define the projects/activities needed for the remainder of the UI Modernization Program. There are five integrated work streams: Foundational projects NJ SUCCESS procure and build UI business change State IT business preparation Program management

THE PURPOSE OF UI MODERNIZATION
NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the integrity of the Trust Fund To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms How have we reached this point? The purpose of UI Modernization The program of work Organizing the program Challenges to delivering UI Modernization Vision for UI Modernization Program objectives and measures Summary business and technical designs

Vision for UI Modernization
The purpose of UI Modernization Vision for UI Modernization We will deliver revolutionized unemployment insurance services, while maintaining the integrity of the Trust Fund At each point of customer contact, we will provide a fair, friendly and high quality service to every member of the workforce community For claimants, we will help them to focus on reemployment by making the claims process timely, efficient, and informative. We will also help them to access related government services by improving referrals from UI, in partnership with the workforce community For employers, we will simplify correspondence and improve our responsiveness. We will treat employers as partners in the provision of unemployment insurance For staff, we will empower them to deliver superior service by ensuring a stable work environment, creating equal opportunities for career growth and providing appropriate tools and training to do the job. We will treat our employees with the same professionalism and respect they are expected to share with every UI customer.

UI Modernization objectives and measurements
The purpose of UI Modernization UI Modernization objectives and measurements In order to communicate, manage and monitor achievement of our UI Modernization vision, we have developed a comprehensive set of objectives and measurements. These – still evolving - objectives and measures are contained in full in a MS Excel spreadsheet at Appendix F. We will monitor the true business value derived from UI Modernization using these objectives and measures: The business architect in the program management office (see slide 86) will be responsible for monitoring delivery against objectives and measures For NJ SUCCESS, we will link every use case (requirements scenario) to delivery of one or more objectives Our vendor will therefore be held accountable to deliver technology that enables us to achieve our business vision, not just a technology solution All UI Modernization projects will need to be justified in terms of how they help to deliver our objectives If a proposed project does not deliver sufficient UI Modernization value, we will not do it

Our objectives for UI Modernization (page 1 of 2)
The purpose of UI Modernization Our objectives for UI Modernization (page 1 of 2) Optimize staff resources by balancing workload across the state Communicate clearly, in a way the customer will understand – including the language they understand wherever possible Streamline communications using modern tools and encourage customers to use the same tools, particularly employers Where needed, redirect inquiries to the right person to resolve a problem, first time Improve responsiveness to customer (whether claimant, employer, or internal agency) needs Treat our customers with respect and not as numbers Get accurate data from the start – and reuse it to avoid rekeying Employees will have access to all of a customer's non-confidential data (via their case file) Apply rules fairly and consistently and maintain regard for due process All new processes and systems must be flexible and easy to change Access to UI is available 24/7 Ensure that staff have the tools and training they need to succeed Make the Division of UI a fulfilling place to work

Our objectives for UI Modernization (page 2 of 2)
The purpose of UI Modernization Our objectives for UI Modernization (page 2 of 2) Provide a career path to employees Use tools effectively to enable performance management, development and policy improvement Ensure that our staff have the knowledge, tools and support necessary to deliver the best service they can Maintain equally the integrity of systems, processes and finances Maintain the integrity of the trust fund Support initiatives led by our workforce partners through close co-operation and data-sharing Ensure that claimants are aware of reemployment and other related services as early as possible Prevent incorrect payments, before they happen Allow our UI employees to create their own management reports Promote customer self-service (via phone, web or ), while preserving in-person service for those who need it Deliver timely, seamless service without sacrificing quality Provide superior customer service

Business process conceptual design
The purpose of UI Modernization Business process conceptual design The business process conceptual design defines the high level framework and blueprint for UI Modernization. See our earlier report for details.

Technical architecture and interfaces design
The purpose of UI Modernization Technical architecture and interfaces design The technical architecture and interfaces reports define the recommended IT approach for delivering the NJ SUCCESS system to support UI Modernization. See the report for details. Manage customer channels Certify Appeal Control Benefit Payments Support appeal decision-making Manage investigations & debt collection Make payment Manage appeals Manage certification Presentation Business Application Data Inquiry and Triage Intake Adjudicate Capture inquiry Decide automated eligibility (claims w-o agents subset) Support adjudication decision making Manage triage Manage intake Manage adjudication Manage UI information Web IVR In person Provide UI performance information Provide electronic case file information Provide financial reporting information Capture claim information Capture certification information Capture appeal information Verify claimant validity Capture adjudication information Identify potential fraud and overpayment cases

The name of the future UI system is NJ SUCCESS
New Jersey’s State Unemployment Compensation Claimant (and) Employer Service System

THE PROGRAM OF WORK NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the integrity of the Trust Fund To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms How have we reached this point? The purpose of UI Modernization The program of work Organizing the program Challenges to delivering UI Modernization Scope and timeline Foundational projects workstream NJ SUCCESS procure and build workstream UI business change workstream State IT business preparation workstream

Scope of UI Modernization
The program of work Scope of UI Modernization UI Modernization is one of the largest initiatives to be undertaken by the Department of Labor. To deliver the objectives, the scope is: Activity summary: Detailed design and implementation of improved processes throughout the organization Detailed design and implementation of NJ SUCCESS (single, replacement IT system) Organization analysis and potential change to support the new processes towards reasonable consolidation An organization and culture change workstream focused on making UI a fulfilling place to work Improvements to UI systems oversight, to increase assurance Program scope: Unemployment insurance (standard, in-state benefits; interstate unemployment insurance; combined wage claims; UCX and UCFE; and all extensions) Disability During Unemployment NJ-specific programs: Additional Benefits during Training, Self-Employment Assistance Disaster Unemployment Assistance Trade Adjustment Assistance

Scope of UI Modernization
The program of work Scope of UI Modernization Organization scope: Entire Division of Unemployment Insurance Covering c staff State-wide offices Board of Review Disability During Unemployment (DDU) unit Interfaces Where processes within UI Modernization scope interface with our partners, we will ensure the interface continues to operate as currently, or better Technology scope: Modernization of all systems currently supporting the Division of Unemployment Insurance, Appeals Tribunal and Board of Review Key components include an operational data store (ODS) and data warehouse; workflow and case management; business rules engine; virtual contact center See UI Modernization Technical Architecture for full scope Oversight of and support to infrastructure changes required to support the new systems (for example, the Garden State Network) Implementation of system monitoring and support tools, making best use of solutions already available in NJDOL and/or OIT

UI Modernization recommended timeline
The program of work UI Modernization recommended timeline Phase 1 Phase 2 Phase 3? 2003 2004 2005 2006 2007 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FOUNDATIONAL PROJECTS (see slides 49 to 55) ODS IVR IVR, Phase 2 DIGITAL RECORDING EPAYMENTS NJ SUCCESS PROCURE, BUILD & ROLL-OUT (see slides 56 to 65) RFP & PROC’MT STRATEGY VENDOR BID EVALUATION EXTERNAL INTERFACES CHANGE MGT USE CASES PREP & DESIGN* DEVELOPMENT & TESTING* (RAD – ITERATIVE) * Indicative only; to be confirmed with implementation vendor TRAINING & ROLL-OUT* ORG & SKILLS REVIEW HR REVIEW HR PROJECTS UI BUSINESS CHANGE PROJECTS (see slides 66 to 68) ORG CHANGE PROJECTS CUSTOMER SERVICE IMPROVEMENT PROJECTS (E.G., EMPLOYER TRIAGE, TRAINING, ECORRESPONDENCE…) CULTURE CHANGE PROJECTS (E.G., LABOR-MANAGEMENT WORKSHOPS, CAREER PATH DEFINITION…) STATE IT BUSINESS PREPARATION (see slides 67 to 71) IT SKILLS DEVELOPMENT (FOR DESIGN, DEVELOPMENT & MAINTENANCE OF NJ SUCCESS) IT KNOWLEDGE TRANSFER (VENDOR TO STATE) AGREE SUPPORT ORG’N PROGRAM MGT & ASSURANCE VENDOR CONTRACT MGT, RESOURCING, CHANGE MGT, LEAD DELIVERY ASSURANCE PROGRAM MANAGEMENT (see slides 72, 86 to 103) BUSINESS DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, BUSINESS ARCH DESIGN & ASSURANCE IT DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, IT ARCHITECTURE DESIGN & ASSURANCE, HARDWARE AND SOFTWARE PROCUREMENT ONGOING OPERATIONS, SYSTEM MAINTENANCE AND PARALLEL INITIATIVES

Timeline assumptions (page 1 of 3)
The program of work Timeline assumptions (page 1 of 3) The timescales in the recommended timeline for UI Modernization are based on a set of working assumptions. Should these assumptions not be met, then we will need to impact assess and adjust the timeline. Key assumptions The design, development, testing, and implementation of NJ SUCCESS require the services of a vendor – starting 10/1/04 The developed RFP attracts bids that meet our needs and a reliable vendor is selected Required technical, business and program management resources are available The ODS foundational projects and the first two IVR foundational projects are complete or near completion by the vendor start date These projects are on the technical development critical path NJDOL and OIT staff receive training and development opportunities on the new technologies, tools and approaches so that they are experienced prior to vendor start Where needed, we bring in external resources to augment in-house capabilities

The program of work Timeline assumptions (page 2 of 3) A program management structure to coordinate resources, relationships with the vendor(s), establish standards, policies and procedures is in place Both in terms of business controls and technical controls The foundational projects’ resulting systems and the vendor’s architecture can be merged smoothly Both conform to the technical architecture Resources with sufficient UI, DDU and interfacing agencies’ business knowledge are available Business logic currently existing in all current UI systems is available Either documented or via a short reengineering exercise Use cases developed for the NJ SUCCESS RFP, combined with policy and procedure documentation, cover the end-to-end logic required The State improves the existing infrastructure appropriately (available network architecture, control and monitoring tools) in advance of NJ SUCCESS deployment External systems/departments are cooperative and have enough resources to work on design and implementation of the new interfaces

The program of work Timeline assumptions (page 3 of 3) Scope is clearly managed and any changes occur smoothly Training needs are analyzed early and just-in-time training provided A transition plan for support and maintenance of NJ SUCCESS is created in advance, resourced, managed and followed Few legislative changes requiring system development are passed, to distract resources away from UI Modernization

Internal dependencies
The program of work Internal dependencies The program timeline contains a number of internal dependencies for the program: The design and build of the core NJ SUCCESS system will only be possible after the award of a contract – and therefore following a complete procurement process An acceptable timeline, approach, cost and resource profile for NJ SUCCESS will be dependent on a well-crafted and timely RFP and vendor selection process As scoped, the NJ SUCCESS design and build will work from an already-developed data architecture. If we do not develop the data architecture in advance, the design and build phases will be longer Deployment of NJ SUCCESS will be dependent on timely delivery of in-house foundational projects (IVR and ODS related) as well as on vendor projects The full set of culture and human resource change projects will be clear following: The labor-management workshops The organization and skills forecasting project All of the dependencies above are contingent upon close management so that key quality and schedule milestones are achieved

External dependencies
The program of work External dependencies UI Modernization is also dependent on external agencies and events: When needed, funding is requested and available to support internal and external UI Modernization spend In addition contingency funding is made available quickly, for risk mitigation/avoidance The new approach of Rapid Application Development (RAD) and vendor performance control by acceptance measure are approved by all stakeholders Especially State procurement stakeholders See ‘Procure and build NJ SUCCESS workstream’ for more details Sufficient good quality bids are submitted by the vendor community Resource commitments from all agencies involved are both sufficient and honored External interfaces are developed and modified in sufficiently timely manner to support development of NJ SUCCESS

Phase 1 - Program preparation (Aug 2003 – Sept 2004)
The program of work Phase 1 - Program preparation (Aug 2003 – Sept 2004) The purpose of this phase is to gear-up in advance of the start of the NJ SUCCESS implementation vendor. Proper advance preparation and creation of program management functions will help ensure that NJDOL keeps ‘control of its own destiny’ – a lesson learned from many recent projects. Major milestones for phase 1 are: Development and publication of the NJ SUCCESS RFP; then evaluation, selection and vendor start by September 2004 A program QA review (see slide 96) should be planned just prior to vendor selection Delivery of foundational projects key to NJ SUCCESS – e.g., operational data store (ODS) projects Delivery of epayments and digital recording: two modernizations that can be delivered quickly and deliver immediate benefits Launch and preparation of the program management office (PMO), in particular the technical architect and vendor management functions in advance of vendor start UI business change projects: completion of the organization and skills review This will provide a clear picture of the ‘modernized UI organization’ in time for the detailed design of NJ SUCCESS (when estimates of geography, size, # seats, etc will be required)

Phase 2 - Core delivery (Oct 2004 – Sept 2006)
The program of work Phase 2 - Core delivery (Oct 2004 – Sept 2006) The core delivery phase will begin when the vendor team starts work with the State and run through to state-wide implementation of the core NJ SUCCESS system. Based on programs of similar scale, NJDOL has estimated a timeline of 2½ years for the core implementation. Milestones and activities within these parameters will be dependent on the approach proposed by the winning vendor. In parallel to the NJ SUCCESS build, the following State milestones should be delivered in phase 2: UI business changes (success measures to be defined) through Labor-management workshops (through to 2005/6) BPC unit change of focus towards prevention of overpayments (2004) Launching a UI specific skills training function (additional and complimentary to State training) (2004) Launching employer triage (2004) IT skills improvement and knowledge transfer In conjunction with OIT, NJDOL will pro-actively plan and manage the training and on-the-job development of IT staff across NJDOL and OIT, so that the State is ready to take ownership of NJ SUCCESS in September 2006 (exact milestones to be determined)

Phase 3 – Roll-out and supplemental delivery (October 2006 to ?)
The program of work Phase 3 – Roll-out and supplemental delivery (October 2006 to ?) We anticipate that there will be a phase 3 for UI Modernization, following the core delivery phase. The roll-out of NJ SUCCESS is expected to take 6-9 months to fully complete. The scope of phase 3 will become more apparent as the RFP is developed and through the detailed design work for NJ SUCCESS. Preparation milestones for a possible phase 3: Completion of NJ SUCCESS RFP development, February 2004 What has been left outside core scope? Completion of NJ SUCCESS detailed design, tba by vendor (est. late 2004) Have any extra requirements / ‘nice-to-haves’ been identified? Q1 2006, as phase 2 closedown is on the horizon Scope and plan for phase 3? Budget? Resourcing?

UI Modernization is organized into five workstreams
The program of work UI Modernization is organized into five workstreams Program management office (PMO) Program Manager 5 1 2 3 4 FOUNDATIONAL PROJECTS PROCURE & BUILD NJ SUCCESS UI BUSINESS CHANGE STATE IT BUSINESS PREPARATION Projects Projects Projects Projects The following pages describe the purpose and approach for each workstream. Outlines have also been developed for each project (see Appendix A)

Breakdown of the projects under each workstream
The program of work Breakdown of the projects under each workstream UI MODERNIZATION PROGRAM FOUNDATIONAL PROJECTS PROCURE &BUILD NJ SUCCESS UI BUSINESS CHANGE STATE IT BUSINESS PREPARATION Operational Data Store (4 linked projects) Procure NJ SUCCESS Organizat’n & skills review IT skills development Establish UI specific training function IVR enhancement (6 linked projects) Build NJ SUCCESS Knowledge transfer Creating overpayment prevent’n workflow in BPC Digital Recording NJ SUCCESS interfaces change management Joint labor-management workshops Agree the support organization Career paths in UI epayments Roll-out NJ SUCCESS Establish customer feedback Customer service coaching Claimant triage Employer triage Employer correspondence

Foundational projects workstream
The program of work Foundational projects workstream Foundational Projects are fundamental precursors for NJ SUCCESS. They are IT development projects that we can develop separately from the core of NJ SUCCESS, using in-house resources. They provide three key benefits for NJ SUCCESS: Visible early delivery of benefits and customer service improvements Digital recording project: will enable managers to review telephone conversations across intake, adjudication and appeal much more efficiently, thereby enhance on-the-job development. - digital recording will also improve the quality of customer service by providing better storage and retrieval of agency-claimant interactions for appeals Epayments project: direct deposit of UI checks will improve customer service and reduce the number of points of potential failure Delivery of building blocks for NJ SUCCESS Operational data store, data dictionary, data warehouse and conversion of current UI & DDU data for the ODS: will create the data architecture in advance of vendor start, with some key benefits: - significantly reducing the overall program duration - putting our IT resources at the center of designing a key information asset (and part of the NJ SUCCESS system) that will provide value to the whole State - enabling interface migration to start much earlier IVR consolidation: by retaining ownership of IVR developments we ensure greater knowledge, skills and control within the State IT resources Providing us with early experience (dry run) to inform planning for larger process of building NJ SUCCESS this early experience will be especially valuable for using RAD development processes The Operational Data Store (ODS) Foundational Projects are the highest priority for NJ SUCCESS.

Foundational projects: timeline
The program of work Foundational projects: timeline 2003 2004 2005 2006 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 VENDOR START DIGITAL RECORDING EPAYMTS DATA DICTIONARY CREATE ODS UI, DDU DATA>ODS DATA WAREHOUSE ODS projects RCC DB CONSOLD’N RCC IVR CONSOLD’N VXML OTHER IVR UPGRADES INTEGRATE IVRs INTEGRATE TO NJ SUCCESS IVR projects Over the next few pages, we set out the proposed approach for the foundational ‘building block’ projects that will be delivered in-house…

Key foundational projects: IVR consolidation
The program of work Key foundational projects: IVR consolidation NJDOL has in-house capability to develop the IVR components of NJ SUCCESS. The IVR consolidation will consist of six project phases, starting in advance of the NJ SUCCESS vendor and continuing alongside core NJ SUCCESS development. Both the current RCC Initial Claims IVRs and the Central Conversant Continued Claims IVRs will be consolidated by these foundation projects. Purpose of IVR consolidation: the overall purpose is to create an overall virtual call center (a single entry point for all incoming calls to NJDOL, covering multiple local phone numbers), enabling correct routing and management of customer contacts by phone. Phases: Consolidate RCC databases to provide a basis for future virtual handling of initial claims Prototype use of Voice XML (VXML) technology alongside existing continued claims certification IVR / Web solution to prove VXML technology approach and provide initial definition of VXML interface for NJ SUCCESS This project is not on critical path for IVR consolidation and so schedule may change Evaluate and upgrade existing IVR equipment to enable production deployment of VXML Consolidate three current RCC IVRs to a single location Develop an consolidated IVR system with VXML for the virtual RCC Covering claims, inquiries, continued claims and interstate claims Note: this project is relatively standalone and could be delivered earlier than scheduled Use VXML to integrate consolidated IVR system with NJ SUCCESS For further details, see the diagram overleaf and Appendix A.

Key foundational project: IVR consolidation
The program of work Key foundational project: IVR consolidation RCC 1 3a Initial Claims Conversants Continuous I B M LOOPS MQ Web VXML 2 ODS NJ SUCCESS 4 Steps (some may be parallel): 1 – Consolidate RCC databases into a single database 2 - Build prototype VXML bridge between Conversants and LOOPS (web continued claims) 3a - Move RCC to the same switch (1st step to virtual call center) 3b - Upgrade RCC and Conversant together on 1 platform (2nd step to virtual call center) 4 - Modify VXML bridge between Conversants and NJ SUCCESS’ web interface 5 - Merge RCC and Conversants into virtual call center 5 3b C I S O Switch Y S T E M S

Key foundational project: operational data store
The program of work Key foundational project: operational data store NJ SUCCESS NJ SUCCESS will store its operational data within the NJDOL Operational Data Store (ODS). Users will access historical information via the data marts. e.g. federal reporting; financial analysis NJDOL operational data store (ODS) NJDOL Operational Data store (ODS) Data Warehouse (DW) Data warehouse (DW) Data Mart 1 Data mart 1 Data mart 2 Data Mart 2 Common State metadata and Logical Data Model Common State metadata and logical data model

Key foundational projects: operational data store
The program of work Key foundational projects: operational data store The Operational Data Store (ODS) is a rationalized, integrated view of data from LOOPS and other supporting systems providing a facilitative and transitional component for NJ SUCCESS. This set of projects constitute the key foundational projects for NJ SUCCESS. They will provide a data environment for new system, as well as transitional data analysis capabilities from current UI data sources. Key phases: Extend State Logical Data Model to cover UI requirements Map source data to Logical Data Model Build Extract Transform and Load Routines for other data sources Load and evaluate Operational Data Store Assumptions: Resources with requisite skills and experience are available to start the project State data dictionary is completed or on its way Technical and functional experts with specific domain knowledge are available Required hardware,software, tools are either in place or can be brought in without impacting the project’s schedule External business, functional and technical experts are available to validate and test the model NJ SUCCESS vendor will validate fit of ODS with their planned solution and complete as needed (e.g., adding further data elements / mapping between data elements)

Risks for the operational data store foundational projects
The program of work Risks for the operational data store foundational projects We will need to take care with the design and approach for the ODS, as there are some significant risks for this set of foundational projects: Are there sufficient resources in the state with requisite skills and experience in the development of data models for enterprise scale information architectures Implemented data model will not be accurate and could require both additions and more serious changes In format of the fields, relationships, etc. Resulting ODS environment will not be scalable Will not be able to handle load of parallel transactions and/or keep the increased volume of data It will be complex to integrate ODS security seamlessly with the rest of the UI systems environment security May need to administer several security domains Implemented data model will not enable generation of all State requested reports

Procure and build NJ SUCCESS workstream
The program of work Procure and build NJ SUCCESS workstream The heart of UI Modernization is the implementation of modern technology throughout UI. NJDOL has aggressive – but achievable – milestones for the procurement and build of NJ SUCCESS: Procurement milestones: RFP to be published by February, 2004 Award to be made and vendor to start by September, 2004 Build milestones: NJ SUCCESS field implementation to start c. September, 2006 An expectation will be outlined in the RFP and the date confirmed by the winning vendor’s proposal Development will be timeboxed into short phases (e.g. 1-3 months), with review points before and after each Again, to be outlined in the RFP and confirmed in the winning vendor proposal

Procure and build NJ SUCCESS: timeline
The program of work Procure and build NJ SUCCESS: timeline The timeline below is indicative only; it is based on an assumption that the successful vendor will propose a UI package-based implementation approach and also adopt RAD methodology. Indicative timelines for different assumptions are provided in Appendix B. 2003 2004 2005 2006 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DEVELOP RFP RESPONSE TIME EVALU- ATION VENDOR START DEVELOP USE CASES SET UP INITIAL DESIGN DETAILED DESIGN DEV & TEST DEV & TEST DEV & TEST DEV & TEST DEV & TEST TRAINING TRAINING ROLL OUT ROLL OUT NJ SUCCESS vendor INTERFACES CHANGE MANAGEMENT

Procuring NJ SUCCESS: key messages
The program of work Procuring NJ SUCCESS: key messages Building NJ SUCCESS is the heart of UI Modernization: it is a significant undertaking that will impact the whole of our UI organization for next 3+ years. RFP development and vendor selection will fundamentally shape the chances of NJ SUCCESS being successfully delivered. We will describe our requirements in use case form Use cases express the behavior of a system (functional requirements) in a manner that both technical and non-technical people can understand Give the vendor community (a) a much better understanding of the business benefits we are seeking and (b) provide us with a better mechanism to hold them to delivering those business benefits We will need to define strong but flexible control mechanisms to manage changes during the NJ SUCCESS build We will assess vendor bids financially in terms of total cost of ownership i.e., bid cost + likely maintenance costs + license costs + hardware/software costs + state team costs, etc

Building NJ SUCCESS: key messages
The program of work Building NJ SUCCESS: key messages We are proposing Rapid Application Development (RAD) and an iterative delivery approach for NJ SUCCESS. This represents a new way of working for our staff and organizations; however it also provides us with some significant benefits: RAD will deliver timeliness and quality benefits to NJ SUCCESS However we will need to be prepared to change established ways of working - preferably as early as possible We will significantly reduce risk through up-front investment in an environment to control the vendor; such an environment will include: Developing strong program and vendor management capability Establishing common program standards, policies, procedures and tools Enabling a proactive approach from our program office and business/technical architect staff in addition to any agreed contractual terms We also need to take care in the design for the implementation of NJ SUCCESS - to ensure that this does not disrupt customer service levels and can be rolled back if required Finally, we will need to communicate and work closely with partner agencies, to ensure that their systems and processes transition effectively to the new ways of interfacing with UI. The next 6 slides discuss our approach to procuring and building NJ SUCCESS in further detail

The RFP will describe requirements in use case form
The program of work The RFP will describe requirements in use case form Describing the UI Modernization requirements in use cases increases the chances that bidding vendors will respond accurately to our needs. This is because use cases enable us to: Express the behavior of a system (functional requirements) in a manner that both technical and non-technical people can understand the desired behavior Provide a single common format to document both user requirements and system requirements This minimizes errors that can occur in translating user requirements (for non-technical audiences) into system requirements (for technical audiences) This enables a higher probability that misunderstandings between the business and the software team are resolved earlier (before the development is well under way) and so avoiding costly re-work late in the development lifecycle In addition, creating the use cases early (during the RFP phase) will also provide us with dividends later: They provide the basis for the whole software lifecycle including architecture, design and development They help testing efforts by facilitating the creation of test cases Use cases already provide requirements in a sequence, so testers do not have to guess at the order and content of user actions For further information on use cases, please see Appendix C.

Partnering with the winning vendor
The program of work Partnering with the winning vendor We are committed to procuring external vendor support to design, develop and implement NJ SUCCESS. We wish to ensure that we conduct the program as a partnership; therefore we have planned the following mechanisms to help enable this to occur: UI Modernization PMO. We will establish a strong program management office team, including a technical architect and business architect, to work with the vendor on all design decisions Providing skilled state resources for RAD teams. Business analysts and IT staff will be freed up to work with the vendor teams We are already compiling a resource plan to enable this We will appoint a resource manager to manage the plan and to arrange training where needed to enhance the skills of state staff specifically for UI Modernization Knowledge transfer. We will make knowledge transfer a success measure for the vendor, linked directly to payments Use cases as a basis for relationship. Use cases will help us to ensure a clear, informed contractual basis for the relationship Use cases will be used to spell out the relationship between UI Modernization objectives, success measures and requirements in the RFP Reuse UI Modernization planning phase deliverables. The deliverables so far (business process conceptual design, technical architecture and this strategic plan) will inform RFP development and be available for vendors.

Rapid application development (RAD)
The program of work Rapid application development (RAD) We intend to follow a rapid application development (RAD) methodology for UI Modernization. Rapid application development is an industry best practice for developing modern IT systems. We anticipate that RAD will provide us with two major benefits for UI Modernization: We will be able to build NJ SUCCESS and the foundational projects within far shorter timescales (and more cost effectively) than is possible under a traditional ‘waterfall’ development model We will be able to undertake co-operative, iterative development of functionality (with joint state and vendor teams), thus enabling the final system to be as close as possible to our requirement

RAD is a fundamentally different model for IT development
The program of work RAD is a fundamentally different model for IT development Analysis Traditional ‘waterfall’ model Specification System Design Detailed Design Coding Unit Test Integration Test System test Acceptance Business Study Feasibility Study Definition RAD model Development Delivery Design & Build System Test Unit Test Acceptance Test Integration Test Roll-out RAD uses iterative cycles to develop the system

RAD implies tightly controlled, time-boxed, iterative development
The program of work RAD implies tightly controlled, time-boxed, iterative development Planning a RAD development requires a different mindset from traditional project management. Development is allowed to advance in functional areas that are known, without waiting for all of the final requirements in the project to be identified. To manage risk in a RAD development, iterations are tightly controlled through the use of fixed ‘time-boxes’ to ensure that the project provides usable functionality early – even if the initial drops of software do not contain the all the desired final features. Principles Re wo rk Effective team Active user involvement 3D lifecycle Early discovery of rework Focused documentation Techniques Time-boxing Joint App. Development workshops Iterative development Delivery focused meetings End-to-end testing Proactive project management Inherent quality RAD projects are controlled through the use of fixed timescales rather than tightly fixed requirements.

Implementing NJ SUCCESS by zip code
The program of work Implementing NJ SUCCESS by zip code We will take a ‘gradual cut-over’ approach to migration from existing UI systems to NJ SUCCESS, using geographical regions: NJ SUCCESS will be built separately from the existing UI environment i.e. LOOPS and other UI systems will continue to run in parallel and will only be enhanced when Federal or State mandated changes are required The initial NJ SUCCESS go-live will be a small ‘pilot phase’ for a limited sub-set of customers and staff only Initially probably supporting just a single zip-code All other customers and staff will continue to use the existing UI environment Once this ‘pilot’ phase is confirmed as successful, the ramp-up can then be continued by zip-code further zip-codes can be cut over to NJ SUCCESS in a controlled manner We benefit in two main ways from adopting this cut over approach: It minimizes the investment of time and effort in integrating the new system with the existing UI systems NJ SUCCESS and the existing UI systems will provide updates to a common ODS during the parallel running phase Limiting initial implementation to a small geography also allows tight control over early roll-outs of NJ SUCCESS.

UI business change workstream
The program of work UI business change workstream Much UI Modernization attention has focused on the IT workstreams and projects. However, the UI business change projects are equally important for delivering the full ambition and benefits of UI Modernization. This workstream is dedicated to organization, culture change and customer service improvements that can be delivered in parallel to the technology development work. The UI business change projects demonstrate our commitment to modernizing not just the tools we use but also the way that we work. Key UI business change milestones: UI-specific skills training function launched, 2004 BPC transformation to an overpayment prevention workflow that takes advantage of near real-time information, 2005 Employer triage function launched, 2004 Organization and skills review complete, 2004 Full triage services launched (with system in place), date dependent on NJ SUCCESS workstream The UI business change projects will be entirely delivered by Division of UI and DDU staff

UI business change: timeline
The program of work UI business change: timeline The projects below represent the full set of business change projects currently identified, with a focus on We anticipate that further business change projects will be identified, going forward. 2003 2004 2005 2006 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ORG & SKILLS REVIEW HR REVIEW (TENTATIVE ONLY) CWC INTEGR’N EST. UI SPECIFIC SKILLS TRAINING FUNCTION CREATING OVERPAYMT PREVENTION WORKFLOW IN BPC JOINT LABOR-MANAGEMENT WORKSHOPS ONGOING? CAREER PATHS IN UI EST. CUSTOMER FB CUSTOMER SERVICE COACHING CLAIMANT TRIAGE PHASE 2 EMPLOYER TRIAGE PHASE 2 EMPLOYER E-CORRESPDNCE

UI business change will be collaborative
The program of work UI business change will be collaborative A fundamental tenet of our approach to UI Modernization is the full involvement of staff from across the whole organization. This will continue for all projects. Further, a series of labor-management workshops, co-sponsored by the CWA locals 1034 and 1037, will be a central project to the UI business change workstream. These workshops will be an open forum for staff and management in which to identify opportunities to improve procedures, communications and ways of working together. At the time of submitting this strategic plan, the UI business change projects are still undergoing planning reviews. Draft project outlines are available at Appendix A.

State IT business preparation workstream
The program of work State IT business preparation workstream NJ SUCCESS will be built using modern technologies, many of which are new to NJDOL and OIT staff. However, we have a goal for the State to stay in ‘control of its own destiny’ by Having full oversight of the design of NJ SUCCESS Preparing to take on support of NJ SUCCESS as soon as the system is in production The State IT business preparation workstream is dedicated to ensuring the State has the skills, organization and capacity both to work with the NJ SUCCESS vendor and to take over the system once in production. Key milestones: Foundational project teams identified and training / development activities planned, September 2003 A team of at least 15 IT staff is ready and capable to assist the vendor team by the vendor start date, September 2004 System handover – planning, preparation and deadline dates to be arranged with the vendor Detailed support, maintenance and enhancement responsibilities agreed within State, June 2006 (at least 1 year before hand over)

State IT business preparation: timeline
The program of work State IT business preparation: timeline The high-level timeline below summarizes the State IT business preparation projects. As detailed resource plans are drawn up over the next two months, the IT skills development project in particular should contain many key milestones, so that progress can be accurately gauged. 2003 2004 2005 2006 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 VENDOR START IT SKILLS DEVL’T (PREPARING FOR VENDOR START) IT SKILLS DEVELOPMENT (PREPARING FOR NJ SUCCESS HANDOVER) KNOWLEDGE TRANSFER KNOWLEDGE TRANSFER (ALL TECHNOLOGIES, METHODOLOGIES) AGREE SUPPORT ORGANIZATION

State IT business preparation: key activities
The program of work State IT business preparation: key activities IT skills development Enhancing State IT capability will involve a focused plan to invest in training and development of IT staff across NJDOL and OIT. Knowledge transfer To ensure that the State is capable of maintaining NJ SUCCESS, we will launch a dedicated project to monitor and enforce knowledge transfer requirements on the vendor. Agreeing the IT support organization This project will focus on how the State will organize to provide support and maintenance when NJ SUCCESS is live. The desired final IT support requirements (skills, size, capabilities) will need to be agreed reasonably soon to inform the overall resource and development plan The split of responsibilities across NJDOL and OIT will be decided sufficiently in advance to allow both organizations to prepare

Program management workstream
The program of work Program management workstream The functions of the program management workstream are described in detail in the next chapter, ‘organizing the program’. Program management activities are significant enough however to be considered an extra workstream in planning terms (otherwise referred to as the ‘program management office’ or PMO). The PMO will deliver a rolling set of oversight and management activities. As an example, the activities planned for the next month will include: Overseeing of development of ‘super service requests’ for the foundational projects Detailed resource planning Readying locations and equipment for project teams (before project start) Launching the NJ SUCCESS RFP development project – including assistance with detailed planning, team briefing, acquiring software licenses Launching the PMO formally – creating the PMO team, project lifecycle and reporting requirements Reporting progress to the Program Sponsor and Steering Committee Managing risks, budget, progress day-to-day

ORGANIZING THE PROGRAM
NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the integrity of the Trust Fund To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms How have we reached this point? The purpose of UI Modernization The program of work Organizing the program Challenges to delivering UI Modernization Program governance Resources and budget Delivery assurance & vendor management Change management and communications

Three levels of program governance
Organizing the program Three levels of program governance Strategic Level Program Sponsor, supported by Steering Committee. Specific reviews: Program phase end / start or funding demands Major scope changes Changes in business strategy impacting UI Modernization objectives / principles Cycle of 3-6 months Alignment of program to strategic vision Program Level Managed by the Program Manager, support by the PMO Regular review cycles (2 weeks initially) Program Sponsor to authorize minor scope change / budget decisions Change program to deliver the vision scoped to deliver business and IT change driven through strong stakeholder and program management Project Level Individual projects managed by Project Managers Review within project disciplines Interfacing with program governance Enhanced controls through project disciplines projects should be tasked to deliver business benefits driven through rigorous project management Three levels of governance ensure that benefits are delivered and alignment is sustained over time

UI Modernization program structure
Organizing the program UI Modernization program structure Program Steering Committee Strategic level Program Sponsor Director of UI DOL CIO Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Technical Architect Program Manager Program level State IT business preparation workstream Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream Project level Projects Projects Projects Projects

Strategic level program governance roles
Organizing the program Strategic level program governance roles Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Program Steering Committee Program Sponsor Director of UI Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream NJ IT workstream Projects DOL CIO Technical Architect Program Sponsor role: - Has overall responsibility for realizing the benefits of the program within the specified budget - Demonstrates a strong commitment to making the change happen - Identifies the implications of business strategy changes on the program - Resolves problems and takes decisions - Authorizes minor scope changes - Integrates with other programs and key stakeholders - Approves the project plans Program Steering Committee role: - Advises on departmental policy/issues and fit of solution (liasing with IT Governance Board as appropriate) - Approves deliverables and vendor payments - Resolves issues that cannot be resolved through prior escalation processes - Authorizes major scope changes that impact on realization of benefits - Provides a Quality Assurance function - Provides guidance to the program

Steering Committee members have specific oversight roles
Organizing the program Steering Committee members have specific oversight roles Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Program Steering Committee Program Sponsor Director of UI Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream NJ IT workstream Projects DOL CIO Technical Architect Steering Committee oversight roles: Overall Deputy Commissioner, Asst. Commissioner, Income Security Budget & contract Director and Chief Financial Officer, Accounting Technical design Department CIO UI business design Assistant Director of UI Operations Assistant Director of Programs, Appeals and Quality DDU design Asst. Commissioner, Disability Services Security design Director, Office of Internal Audit Key partners: Asst. Commissioner, Workforce NJ Director, Employer Accounts Asst. Commissioner, Labor Planning & Analysis OIT Chief of Staff Director of Human Resources

The program also fits within departmental IT controls
Organizing the program The program also fits within departmental IT controls Systems development projects for UI Modernization will follow the route already established for NJDOL projects. An additional step - analysis and advice from the PMO - will serve to: Ensure fit with the UI Modernization technical architecture Assess and prioritize resources across the whole portfolio of development projects All IT initiatives within UI will follow this process. SYSTEM CHANGE IDEA DEVELOPED PMO ANALYSIS OF STRATEGIC FIT & RESOURCE NEED DIRECTOR’S APPROVAL TO DEVELOP CHANGE REQUEST JOINT DEVELOPMENT OF SUPER SERVICE REQUEST (INCL. $) All IT projects <$250,000 All IT projects >$250,000 SMALL PROJECT BOARD APPROVAL IT GOVERNANCE BOARD APPROVAL

Resource management: UI Modernization principles
Organizing the program Resource management: UI Modernization principles We will follow some key overall principles in our approach to resources: Every business area shall commit full-time resources to the UI Modernization program, as reasonably requested NJDOL Division of UI will retain business control of the program and of each project Program Manager and PMO staffed mainly by Division of UI and DDU UI and DDU staff to provide business input to all projects Technical support will be drawn from DIT and OIT Business analysts, user testers etc will be drawn from UI and DDU business staff across the State, so that field expertise is drawn into the program For each project, a single project manager will be responsible for delivery, drawing upon technical and/or business support as needed We will only use full-time project managers, who will be given clear responsibility and accountability for the successful delivery of their projects

Resources made available to UI Modernization
Organizing the program Resources made available to UI Modernization We have worked through June and July to identify resource requirements for the foundational projects. At the time of writing, the resource plan is semi-developed: A first cut list of business analyst resources has been provided A first cut allocation of technical resources to foundational projects - as well as other IT activities - has been provided The analysis to date suggests an initial State team of c. 25 people for the foundational projects and PMO however, this number may increase because the initial version of the resource plan does not include all people as full-time resources. The PMO will continue to detail out the resource plan, fleshing out exact teams, start and end dates, training needs etc through discussion and through the development of the super service requests for the foundational projects. We will also be seeking clarity regarding who will be dedicated to UI Modernization and who will also remain dedicated to the important task of maintaining the current UI systems environment.

Resource management: ongoing activities
Organizing the program Resource management: ongoing activities The Program Manager will oversee the best use of all resources dedicated to UI Modernization throughout the life of the program. Two measures are proposed: A dedicated PMO resource manager, who will Identify skills required for each project and the PMO Map available people against skills and experience needed Plan development activities and monitor individual development of UI Modernization team members Facilitate recruitment and/or introduction of contractors, where needed A dedicated IT skills improvement project, focusing specifically on DIT and OIT technical training see State IT capability improvement workstream (in the ‘program of work’ chapter) for more details

Funding UI Modernization
Organizing the program Funding UI Modernization Key points: The department has secured dedicated and accurate funding for UI Modernization Annual costs projections for UI Modernization Project will be provided for input into development of NJDOL annual 'SFY budget plan The Program Sponsor will monitor and manage cost estimates on a month by month basis and account for total ongoing costs The Program Sponsor in accordance with current NJDOL policy/procedure will provide cost estimates for quarterly projections and assessments We will maintain full and proper accounting of all costs attributable to UI Modernization

Organizing the program
Delivery assurance Delivery assurance means providing senior management and key stakeholders with the confidence that their objectives are being met and that controlled processes are shaping achievement of UI Modernization objectives. Key Principles Assurance will be based on the appropriate intervention necessary to fulfill the assurance needs of the program Assurance will be a continuous, involving and evolving process We will determine the level of assurance required for different activities on the basis of the associated business risk should issues arise All requirements that require assurance will be clearly and unambiguously defined Where possible, we will defined evidence based measures for determining assurance Acceptance/approval processes will not absolve the provider of assurance from the responsibility to provide such assurance Processes for managing non-compliance to requirements will be established

UI Modernization delivery assurance roles
Organizing the program UI Modernization delivery assurance roles Program Steering Committee Program Sponsor Director of UI DOL CIO Program Manager role - Responsible for ensuring the program is delivered - Liases with key stakeholders - Ensures that all projects within the program remain integrated and aligned - Ensures that appropriate resources are made available to the program - Reviews progress, risks & issues with Project Managers - Reports progress & escalates issues as defined, to Sponsor & Steering Committee - Facilitates all essential events - Intervenes where necessary Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Technical Architect Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream State IT business preparation Projects Projects Projects Projects

UI Modernization delivery assurance roles
Organizing the program UI Modernization delivery assurance roles Program Steering Committee Project Manager role - Has overall accountability for delivering his/her project and realizing the benefits - Manages and controls the project work on a day to day basis - Gives direction to the team, takes/facilitates necessary decisions - Reports progress & escalates problems to Program Manager The PM will be assisted by a business/technical expert, depending on his/her skill set. Program Sponsor OIT technical lead (OIT project mgr) For every project staffed or part-staffed by an OIT team, there will be an OIT technical lead, who is responsible for: - Ensuring the availability of OIT team members - Coordinating all OIT resources to support the project - Managing delivery to the OIT-NJDOL super service request OIT Liaison role: For every project staffed or part-staffed by an OIT team, there will be an OIT liaison: - Responsible for ensuring the availability of OIT team members - Coordinates all OIT resources to support the project - Manages delivery to the OIT-NJDOL contract Program management office (PMO) Technical architect Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream State IT business preparation workstream Projects Projects Projects Projects

UI Modernization delivery assurance roles (cont.)
Organizing the program UI Modernization delivery assurance roles (cont.) Program Steering Committee Program Sponsor Director of UI DOL CIO Program management office (PMO) Business architect Resource management Communications & change management PMO support Vendor management (to be decided) Program Manager Technical Architect Program management office (PMO) Technical & Business Architects Program Management Executive reporting NJ IT workstream Guardians of Modernization vision Schedule management Identification & management of Issue reporting project dependencies Communication Change control Foundational projects workstream Procure & build NJ SUCCESS workstream UI business change workstream Projects Project delivery checkpoints strategy Develop win/wins Risk reports Standards management Engage key Team management & support Technical assurance stakeholders Vendor performance analysis Projects Projects Projects Quality Assurance Build trust and commitment Project control processes Test planning & oversight Vendor, contract & work pkg management processes Successful vendor management requires active ‘relationship management’ that spans all stages in the program lifecycle

The PMO is key to assuring successful delivery
Organizing the program The PMO is key to assuring successful delivery UI Modernization is a large, complex program that, if delivered correctly, will create huge customer and efficiency benefits. We will use the PMO team as the key mechanism to control delivery and assure the Steering Committee that delivery is progressing appropriately: Program Sponsor and Steering Committee will be provided with a holistic view of projects being undertaken All projects within the Program will be delivered and controlled in a consistent and structured, gated manner with clear sign off at each stage Best use of limited resources Oversight of and assurance that each project is contributing the needed benefits, to add up to delivering modernization Visibility of progress, issues, and wins Early warning of impacts and risks Effective communication leading to: Clarity of scope, deliverables and status to all team members and stakeholders Improved staff morale

Program management office roles (page 1 of 2)
Organizing the program Program management office roles (page 1 of 2) The following PMO roles will start in Phase 1: Program manager The program manager will provide overall leadership to the UI Modernization delivery team (i.e., the PMO, project managers and their teams). S/he will also be the main point of contact between the steering committee and the program. With assistance from the PMO support and vendor manager the program manager will lead delivery assurance activities. Business architect The business architect will be the guardian of the UI Modernization business vision and benefits. As such, s/he will (a) provide business design guidance and oversight to all projects and (b) monitor, assess and advise on achieving the anticipated benefits. Technical architect The technical architect will oversee the technical design and delivery of all components of NJ SUCCESS. S/he will define, apply and monitor standards and approaches to assure technical delivery and ensure that the system meets the needs of the future UI. S/he will have significant and proactive involvement with all technical teams. Resourcing manager The resourcing manager will coordinate across all agencies participating in UI Modernization to get the right teams in the right place, at the right time, with the right skills and experience. The role therefore includes skills requirements analysis, development planning & management, negotiation and coordination across agencies.

Program management office roles (page 2 of 2)
Organizing the program Program management office roles (page 2 of 2) PMO support (logistics) The PMO support will assist across all PMO functions. Particular responsibilities usually include: preparation of program status updates, maintenance of the program plan and risk register, maintaining version controls and the project library. Change & communications manager The change manager will advise and run change management activities across the program. S/he will ensure that each project addresses change issues in the way the project is run as well as in its outputs; in addition, s/he will be responsible for stakeholder management for the life of the program. Vendor (contract) manager An additional role of vendor manager is foreseen to support the program manager in overseeing the management of all vendors and contractors. The vendor manager will ensure delivery to contract, manage the change order process and run deliverable QA processes. This role is anticipated to be established c. 3 months prior to vendor start. The program sponsor and program manager should decide at that point whether to constitute the vendor manager as a full-time responsibility.

The PMO will manage every aspect of UI Modernization
Organizing the program The PMO will manage every aspect of UI Modernization Delivering UI Modernization Lead the program team Manage the technical content Manage the control cycle Plan & manage Manage the integration of the program transition to Manage the program resources business operations Enable governance Manage the project portfolio Manage delivery of benefits Manage Manage stakeholders communication Business as usual

Key delivery assurance activities for the PMO (page 1 of 2)
Organizing the program Key delivery assurance activities for the PMO (page 1 of 2) Lead the program team: Lead the management team (including Project Managers) in executing the program plan, ensuring delivery is driven in a controlled and consistent manner and that major issues, changes and disruption are handled in a coherent manner aligned to the business objectives. Manage the technical content: Ensure that the business and technical solution is feasible and consistent with the business objectives, and remains so during the transition between phases of the program (e.g. design, develop, test) and implementation. (PMO business and technical architect roles). Manage the control cycle: Ensure projects follow the established lifecycle and reporting/management requirements. Ensure that exceptions (variances, risks, issues, changes), which may affect more than one project, are considered in the wider context and managed appropriately. Manage program integration: Ensure consistency of approach across the program, including application of common processes & standards; establish common milestones and key integration “events” (e.g. pilots, roll-outs etc). Manage program resources: Ensure resource requirements are met and key skills are optimally and effectively deployed. Enable governance: Facilitate reviews at every level of the program, so that informed decisions can be taken – both timely and appropriate.

Key delivery assurance activities for the PMO (page 2 of 2)
Organizing the program Key delivery assurance activities for the PMO (page 2 of 2) Manage the project portfolio: Ensure that individual project objectives remain valid and aligned with the changing business environment. (Terminate or re-shape existing projects if required; scope and launch new projects as the situation dictates). Manage delivery of benefits: Ensure that expected benefits are explicitly identified and realization of the benefits is tracked and reported. Manage stakeholders: Ensure that stakeholders act in support of the program and commitments are delivered including provision of resources, actions to drive out benefits, issue resolution, etc. Manage communications: Ensure timely, appropriate, consistent and effective communications, including progress and change implications (see change management, slides ) Plan and manage the transition to business operations: Ensure the impact of each project on individual business units/departments is planned and clearly understood such that implementation may be managed efficiently and excessive demands are avoided.

The PMO will enforce a structured lifecycle for projects…
Organizing the program The PMO will enforce a structured lifecycle for projects… Start-Up Management Execution & Review & Project-led Planning Delivery Closure Program-led • Project plan • Status updates • Hand-over • Project business outline • Project organization • Change Requests • Post-implementation review Program assurance checkpoint • Project resources • Risk reports • Project delivery outline • Detailed schedules • Interim reviews with PMO and/or QC team • Risk assessment Initial approval Project start approval Initial completion approval Final completion approval CONTINUOUS PROGRAM OVERSIGHT RESOURCE PLANNING, SCHEDULING AND ALLOCATION PROGRAM BUDGETING/FORECASTING * Technical deliverables excluded from diagram for clarity A standard, structured lifecycle and approvals process will increase clarity and improve our program-project communications

… and a structured QA lifecycle for the program itself
Organizing the program … and a structured QA lifecycle for the program itself As for all large programs, we face the risk with UI Modernization of failing to deliver to original objectives owing to a loss of focus, resource issues, constant ‘fire-fighting’ and many other potential causes. In order to maintain focus on the objectives and benefits stated in chapter one of this strategic plan, the UI Modernization PMO and the Steering Committee will conduct program quality assurance reviews at key times. Strategy & high-level design (complete) Procurement & set-up Program execution Review & Closure QA review Procurement strategy; program set-up QA reviews* Accurate delivery; program set up QA review Benefits evaluation * # dependent on detailed plan QA review Vendor selection; accurate delivery (foundational projects) QA review Service readiness

Program QA reviews keep the focus on delivering benefits
Organizing the program Program QA reviews keep the focus on delivering benefits Program QA reviews are a disciplined means of ensuring the program is still on track. At key points in the program (as shown on the previous page), the PMO and Steering Committee should take a step back to assess if: All activities currently undertaken and planned clearly contribute to achieving the original vision and objectives of the program Appropriate skills and resources are available to the program The timeline and budget are still realistic The needs of stakeholders are being met All significant risks are being addressed The program is ready to move to the next phase … and propose remedial actions if any of the above conditions are not met.

Managing the use of vendors and contractors effectively
Organizing the program Managing the use of vendors and contractors effectively We intend to procure a single vendor to build the core NJ SUCCESS system. Using outside vendors at the heart of UI Modernization will affect our program in a number of ways, each of which must be closely managed: Procurement timelines. Time and effort is needed to create an effective RFP document and procurement process For NJ SUCCESS, we have developed an aggressive but achievable set of targets: Publish RFP by February, 2004 Select winning proposal and vendor start by September 2004 Frameworks and tools. Many vendors bring with them useful tools and techniques, built upon previous experience. UI Modernization will only accept use of tools and techniques that fit with the existing management approach: they must (a) not clash with existing tools in use by UI Modernization (e.g., MS Project) and (b) be easily adopted by State staff, at no extra cost. Knowledge and skills transfer. UI Modernization intends to build knowledge transfer requirements into the NJ SUCCESS RFP, as one condition of payment. See the knowledge transfer project outline in Appendix A for further details.

Managing vendor and contractor delivery
Organizing the program Managing vendor and contractor delivery Contractual relationships will underpin the delivery of NJ SUCCESS. In UI Modernization we will seek to develop a mature relationship with vendors and contractors, enabled by clear contractual and management arrangements: Clear success measures for each deliverable / phase - these will be developed in the RFP and may be expanded by the bid response Simple, structured processes for approvals, payments and change orders Clear responsibilities for risk mitigation - i.e., for activities that cannot be scoped as part of the RFP We will also adopt this more formal approach for OIT and NJDOL super service requests, to clarify and strengthen the relationships between all agencies involved. At all times, vendor relationships will be underpinned by a ‘last resort’ ability to seek alternative assistance these ‘divorce criteria’ will be clearly communicated and understood by all parties

Achieving a mature, balanced vendor relationship
Organizing the program Achieving a mature, balanced vendor relationship Our goal is a strong, balanced relationship that promotes the right conditions for delivery Involve the NJDOL UI management team Both sides must fulfill commitment to contractual terms Regular progress reporting Use formal, simple communications Active risk identification, assessment and mitigation Agree a dispute mechanism & ‘divorce’ criteria Minimizing the risks Making the relationship work Expect & budget for some change orders Establish communication channels early on Define clear processes for variations & payments Check for understanding and agreement between parties Identify objectives & benefits for both parties Define other ‘rules of the game’

Example IT vendor content management activities
Organizing the program Example IT vendor content management activities Above and beyond pure contract and relationship management the PMO will manage technical delivery for UI Modernization. This will include: Defining technical standards, policies and procedures aligned to State and Departmental IT preferences Planning guidelines Managing requirements Controlling design documents Tracking and assessing system development progress Overseeing test cases and the quality assurance process Defining and enforcing version control Issue and defect submission, control and tracking system Technical change management Managing deployment and release control The business and technical architects will provide this capability and will operate under guidance from the Steering Committee (for both business and IT decisions oversight).

Effective change management is crucial to success
Organizing the program Effective change management is crucial to success In UI Modernization we will be managing numerous internal and external drivers of change, in a complex environment: The scope and scale of change in each workstream is larger than all recent NJDOL UI projects The changes are complex, with significant risks The pace of UI Modernization is a step up from normal operations The sheer volume of concurrent changes will put demands on people and not just the PMO team The methodologies proposed are also new to many UI Modernization team members There is pressure on the management team to deliver ‘real’ value, in tight timescales Political Technology timescales Staff convergence expectations State standards Employer methods Customer IT best practices expectations UI Mod’n Partner Demand for demands flexibility Union requests Federal reqts Labor market Innovation forces Environment National issues best practices Success will be dependent on our getting the ‘people’ aspects right

Major change management principles (page 1 of 2)
Organizing the program Major change management principles (page 1 of 2) Involving representatives from across the UI world. We will continually draw in experts from across the UI Division and from partners agencies to input into the design, development and testing of NJ SUCCESS. This will help to ensure that the resulting solution meets the needs of the ‘people really doing the work’. UI management accept this impact on operations; partner divisions and agencies are currently being asked to nominate staff they will dedicate to the program Making culture change a high priority. UI Modernization is not just about delivering NJ SUCCESS into production. Our commitment to culture and organization change is demonstrated by: Our vision, objectives and measures, that mean that we will only have achieved our aim when we meet key performance criteria A dedicated UI business and culture change workstream. Significant improvements to the way we work can be achieved even without a new system. The projects in this workstream are charged to deliver these changes For example, a joint labor-management workshop series to have open discussions about work relationships and culture

Major change management principles (page 2 of 2)
Organizing the program Major change management principles (page 2 of 2) Investing in communications. We will pro-actively communicate with all stakeholders to make sure they remain up-to-date with UI Modernization and its impact upon them Planning communications and ensuring all stakeholders remain up-to-date: knowledge is half the battle! In particular, communicating achievements that will benefit stakeholders directly (such as the quick wins work already under way) Ensuring leadership is demonstrated to all stakeholders by arranging communications / meetings directly involving the Program Sponsor, and/or other senior managers Asking for and reacting to feedback from stakeholders Building a network of change agents, who can both spread the message about UI Modernization as well as gather feedback and input Considering ‘people’ issues for every project. Each project manager, with PMO assistance, will need to include change management activities in their project plans For example, what people / process / organizational changes will be needed to get maximum value from the interim operational data store (ODS)? The PMO will be responsible for coordinating change activities (as well as all dependencies) across projects

The PMO change manager will focus on winning, and keeping, the hearts and minds of stakeholders
By identifying key stakeholder groups and rigorously managing expectations By building and delivering robust communications plans By building commitment step by step Strategy & Change Vision Awareness Understanding Contributing Engagement Support Obligation Dedication Ignorance Refine Change Approach Create Engagement Elicit bottom-up feedback Initiate Implementation Stakeholders will be actively managed to ensure they act in support of UI Modernization Different communities and individuals will have differing influence over and attitudes to change – this needs to be understood to inform our plans We will plan engagement at different levels for different stakeholder groups – focusing on adjusting attitudes Our focus will be to communicate fully, otherwise gossip and hearsay will fill the void left behind We will create open two-way communication processes We will seek and act on feedback about the change, back ‘up the line’ We recognize that change is a process that must be managed step-by-step We will gauge how key stakeholder groups progress from communications to commitment We will target interventions, tactics and resources to the progress of key stakeholder groups

CHALLENGES FOR ACHIEVING THE PROGRAM
NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the integrity of the Trust Fund To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms How have we reached this point? The purpose of UI Modernization The program of work Organizing the program Challenges to delivering UI Modernization Many challenges face the UI Modernization program Program planning variables Critical success factors and associated risks

Many challenges face us with the overall program…
Challenges to delivering the program Many challenges face us with the overall program… Finding personnel with proven track record of successfully managing and delivering a program of this size and complexity Program timelines do not allow for learning curves or rework of invalid decisions Ensuring the program isn’t delayed due to lack of timely decision-making by involved stakeholders Program decisions often need to include NJDOL, DIT, OIT, Procurement, Finance etc Internal unwillingness to question the status quo and resistance to change “That’s the way we’ve always done things” “That won’t work in New Jersey” Winning and keeping the hearts and minds of all staff during modernization journey Capturing and maintaining senior sponsorship during the lifetime of the UI Modernization program

… of these, ‘getting the resourcing right’ is most immediate
Challenges to delivering the program … of these, ‘getting the resourcing right’ is most immediate At this stage of UI Modernization, we have the opportunity to make preparations that many programs fail to invest in: to get the right resources, up front, for the program. Many of our staff are experienced individuals at UI operational management activities; however the skills needed for a complex IT enabled business change program are different. Staffing the program too highly with people who have not delivered a complex IT enabled business change program may cause us problems due to: less effective and rapid delivery due to staff requiring learning curve activities and time a potentially increased error rate and corresponding additional rectification activity increased likelihood of unrecognized errors impacting the quality of deliverables / functionality, leading to undiscovered rework and program slippage a possible content and decision vacuum during critical early stages i.e., weak leadership on the technical and business architectures increased risk of NJ SUCCESS vendor effectively driving the program rather than State

UI Modernization program delivery variables
Challenges to delivering the program UI Modernization program delivery variables Deliverables Resources Timescales All programs and projects have three fundamental variables (constraints): Deliverables Resources Timescales For UI Modernization, we are freezing the deliverables variable i.e. UI Modernization must include: triage, workflow, business rules, preventative cross-checks for overpayments etc. Therefore the only way of changing the UI Modernization program is by varying the resources and/or timescales: Shorter timescales will require us to deploy a higher level of resources a ‘higher level of resources’ here will involve increasing the ‘quality’ of resources as well as the ‘quantity’ Therefore, the lower the achievable level of resources, the longer timescales we need As well as monitoring for any unintended quality reductions

Indicative resourcing profile for our proposed timescales
Challenges to delivering the program Indicative resourcing profile for our proposed timescales Total resource levels State resource levels (increasing over time to ensure handover of NJ SUCCESS) To meet our proposed UI Modernization timescales, high peak levels of resourcing must be applied. i.e. if deliverables are fixed and timescales are relatively short, then We must provide higher peak levels of resourcing (both head count and skills) from the State We also need to manage higher peak levels of vendor/contractor resourcing Deliverables Resources Timescales

What if our proposed resourcing profile cannot be met?
Challenges to delivering the program What if our proposed resourcing profile cannot be met? Total resource levels State resource levels (increasing over time to ensure handover of NJ SUCCESS) If the resourcing levels associated with our proposed approach cannot be met, then we will have to lengthen timescales. Lengthening the timescales would spread and lower the peak resourcing level required for both state resources and vendor resources However, even if we did lengthen the timescales, we would need to retain a focus on keeping a high quality and and highly capable program and project teams Deliverables Resources Timescales

Critical Success Factors
Challenges to delivering the program Critical Success Factors Critical Success Factors (CSFs) are conditions that must be met in order for the program objectives to be achieved. In the course our analysis we have identified the following major CSFs for UI Modernization: Adequate funding and resourcing are achieved and maintained Culture change of applying program management disciplines is achieved The interim business projects are successfully delivered UI and associated parties work as teams to deliver UI Modernization Participation and involvement from a cross section of UI personnel UI Modernization is delivered on time and on budget The delivered functionality (process and technology) provides the capabilities needed for the future of UI State personnel participate in the development of NJ SUCCESS and the State is able to maintain NJ SUCCESS once implemented An effective project management office and vendor management capability are established early and maintain control of the program

UI Modernization risks
Challenges to delivering the program UI Modernization risks There are many risks that may prevent us from achieving the critical success factors for UI Modernization and therefore our objectives: Lack of control of detailed technical and business designs in phase 1 - foundational projects and preparation Losing control of vendor design and development Failure to address serious issues because of organizational confusion between NJDOL (UI and DIT) and OIT Stakeholders fail to see the benefits of UI Modernization Key foundational projects cannot be delivered to time, budget or specification Staff working on the foundational projects are diverted back to LOOPS maintenance NJ SUCCESS RFP is not developed to sufficient quality within target timeline Department decides that a Rapid Applications Development (RAD) approach is not compatible with State procurement regulations We do not assess the costs of NJ SUCCESS vendor bids effectively, leading to a selection of the lowest priced bid Insufficiently skilled vendor team Knowledge transfer is only given lip service by vendor UI business change workstream is neglected State IT staff do not have sufficient skills and experience to deliver – e.g., ODS projects One of the first tasks of the program management office (PMO) will be pro-actively to mitigate these risks as soon as possible. See Appendix E for a detailed discussion of each risk listed above

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