IT Governance at the SCO George J. Papailias Assistant Division Chief Information Systems Division California State Controller’s Office

SCO IT Governance Department Vision Governance Agenda Vision Guidelines Attributes Principles Roles/Responsibilities Work To Date/In Progress

Department Vision Be customer focused Be proactive Make SCO the best place to work Better utilize technology

Governance Vision The SCO’s business and technology leadership, through effective IT governance, will support the Controller’s strategic vision to: Be customer focused Be proactive Make SCO the best place to work Better utilize technology

Governance Vision (cont.) We commit to proactively work together through mutual cooperation, resource sharing and trust in making and enforcing strategies to better serve our customers. We will establish a clear and consistent approach to setting priorities for IT activities and allocating resources to ensure the maximum business value for SCO and its customers.

Current Issues We Are Facing Stove pipe approach IT skills shortage How to plan for and create a long term IT vision Legacy infrastructure Learn best practice/benchmarking from other governments and companies Data protection and security Increasing expectations of delivering governments 24 hours Lack of measurability of value

Governance Board & Processes

Governance Guidelines IT Governance that demonstrates decision making driven from business strategy IT Governance model that works for Controller’s Office but could become a state model IT Governance approach that takes advantage of technologies

Governance Attributes Organization has a shared mission, values & purpose Information is shared through a common language Cooperation/partnership expected between IT and business Initiatives to achieve business strategies defined by business Business & IT responsible for allocation of necessary resources

Governance Attributes (cont.) Technology outcomes and solutions delivered by IT SCO IT processes centralized and policies and procedures well-defined Not vertically integrated; the organization doesn’t own all competencies required to produce a product or deliver a service Standards become very important

Governance Principles SCO processes create close IT/business alignment Business leadership determines which investments are the “best-value” return (both efficiencies and customer benefits) Structure activities to deliver greatest benefit in shortest time

Governance Principles (cont.) Drive constant improvements with performance measurements based on outcomes Utilize a State & SCO-wide common infrastructure Adherence to policy & standards

Our Future Direction Portfolio Management Architecture alignment Measure and monitor “value”return “Portfolio” investing rather than a project-by-project approach Investments aligned by governance process New metrics: Customer adoption and satisfaction Architecture alignment Ensure enterprise view Resource Management Shared services Greater central coordination

Rollout Approach GUIDING PRINCIPLES PRINCIPLE TRANSLATED TO ACTION SCO processes create close IT/business alignment Enable consistent project mgt & prioritization process Portfolio mgt Business leadership determines which investments are the “best-value” return Work on enterprise and divisional business processes at the same time Funding model Structure activities to deliver greatest benefit in shortest time Go with a best decision, don’t wait for the 100% solution – fast prioritization process Identify 4 key deliverables for leadership in SDLC

Rollout Approach (Cont.) GUIDING PRINCIPLES PRINCIPLE TRANSLATED TO ACTION Drive constant improvements with performance measurements based on outcomes Require measurement of baseline and target business metrics for functional and enterprise efforts Implement 3 month review process Utilize a State-wide & SCO wide common infrastructure Enable transition to business process focus Create Enterprise Arch, security, Project planning advisory groups Adherence to policy & standards Create architectural service in project mgt process

Roles - CIO Understand, determine, and support enterprise & SCO wide standards; architect, operate infrastructure Consistent execution of business requirements Provide visionary direction Consultant: teach and inform business about strategic use of technology

Roles – Business Leadership Create clear business vision and strategies Be informed of leading technology practices Identification of opportunities, priorities and return Evaluation and reengineering of business processes

Business Leadership (cont.) Determine the investment between technology efforts and deployment of resources Identify opportunities for synergies across the enterprise

Governance Board Charter A cross-divisional team focused on driving enterprise-wide solutions. Aligning similar initiatives across the enterprise Appropriate funding model Making key operational policy decisions Developing Enterprise business process framework Enforcing decisions with attention to execution and accountability

Decision Framework to Drive Strategy-Action-Results IT Investment decisions made in the context of SCO’s X-divisional IT investment and adhere to architecture and standards SCO Governance Board Top-Down Based Programs State-Wide Initiatives Enterprise Integrated Projects Divisions will continue to have ultimate control over IT investment decisions within allotment to gain quick wins and drive innovation within a division while aligning to architecture and standards Division Innovative Division Focus IT activities are measured for value and continual improvements Division IT Excellence Foundational Efforts Infrastructure Assessments/Business Case Prioritization process for foundational architecture initiatives. Exceptions go to Governance Board Share Knowledge Achieve Results Plan Execute 20 20 20

SCO Working Group Areas Etc … Etc… Centralized Infrastructure, Standards and Architecture CIO Collections IT Audits Disburse-ments Disbursements Advisory Groups Security Business Continuity Emerging Technology Enterprise Arch Project Planning Strategic & Budget Planning SCO Governance Board Ad Hoc Work Groups Portfolio Executive Support

Work to Date Project Initiation Process Business/IT Requirements Prioritized Project List Business/IT Requirements No Development Activity IT Tactical Plan Agency Info Mgmt Strategy Process AIMS Document IT M&O Activity? IT Tactical Planning Process Daily Operations SR’s & Development Yes M&O Activity Key IT Management Function IT Governance Function EIT Governance Entity IT M&O Support Process Annual IT M&O Support Plan

Work to Date cont. M&O Plan Excerpt

Key Success Factors in Governance Transformation Leadership agreement on governance principles Ensure top down, highly visible leadership engagement Pilot new governance with highest readiness level organizations Focus on and motivate the key influencers in the organization Concentrate the best resources in the place most in need of change with highest payoff Gain early, visible successes

Key Success Factors Going Forward Strong, visible, top down leadership Funding model that drives leadership accountability Clearly delineated roles and responsibilities Create cultural elements that facilitate rapid change for “right” reasons Measurable, quarterly performance metrics combined with successful execution Standardization for “good of the whole”

Summary We do not just use technology, we want to use technology right New customer solutions will come from integrated solutions across SCO enterprise Must drive IT / business alignment Communicate increases in business value New process on how IT and business can work together Start evolutionary process that encompasses: People (culture), business process, and technology Build the architectural foundation of systems and data Perform cross functional governance and appropriate funding model