Building an Enterprise Operating Framework IPMA Executive Summit Building an Enterprise Operating Framework Facilitators: Josetta Bull, Gartner Phoebe Cameron, Gartner

Building An Enterprise Operating Framework Agenda and scope Defining the Enterprise Operating Framework Defining Enterprise Operating Principles Defining Implementation Strategies Allen – tell them what we’re going to tell them… Before I get into them I want to emphasis the point that there is no big “architecture in the sky” for all of state government. Architectures must be aligned with the business of the organization. I recently read an article from Gartner Group about a package delivery enterprise that decided to expand into a service business. The organization discovered they needed a whole new infrastructure to support the service business. The Technical Architect from Frank Russell spoke at a seminar at St. Martin’s last week, and one of the points he made was that through mergers, they now have three distinct lines of business, with three architectures. Having said that, it is possible to have a single architecture for the “back office” functions of state government – finance, budget, personnel, payroll, purchasing.

Defining the Enterprise Operating Framework Definition What is an Enterprise? State - focus on infrastructure, data and security challenges Community of Interest - focus on bringing organizations together, any level of government Agency - focus on business opportunities Allen – tell them what we’re going to tell them… Before I get into them I want to emphasis the point that there is no big “architecture in the sky” for all of state government. Architectures must be aligned with the business of the organization. I recently read an article from Gartner Group about a package delivery enterprise that decided to expand into a service business. The organization discovered they needed a whole new infrastructure to support the service business. The Technical Architect from Frank Russell spoke at a seminar at St. Martin’s last week, and one of the points he made was that through mergers, they now have three distinct lines of business, with three architectures. Having said that, it is possible to have a single architecture for the “back office” functions of state government – finance, budget, personnel, payroll, purchasing. You a member of multiple Enterprises! Today we are focusing on the HR/Payroll Community

Enterprise Architecture State and agency enterprise architectures Points of compatibility State of Washington State Architecture Kathy Before I go any further, I’m going to describe the levels of enterprise architecture that we see in our state. There is no one-size fits all architecture. Each agency will have some unique architectural models depending on their business needs. There are also communities of interest that share points of compatibility among their architectures, and there are some architectural components that exist at the statewide level. You’ll hear more about these three levels from Gartner later today. Dept of Health Social & Health Services HR/Payroll Community of Interest Architecture Agency Architecture Agency Architecture

Defining the Enterprise Operating Framework Business Technology Change Management Budget Staffing Governance / Policy

Defining Enterprise Operating Principles What is an Operating Principle……. Operating principles are statements that help defines how an organization makes business decisions. Operating principles clearly define roles and responsibilities. Operating principles are what an organization strives to achieve. Operating principles address general business operations, policies, standards, oversight, and resources. Operating principles provide the foundation for the Information Technology Governance Charter. Operating principles need to be tested over time and updated as appropriate, ensuring they help facilitate improvement of our information technology infrastructure.

Business We will seek business leaders’ commitment by presenting a business case that helps them understand the benefit We will collaborate in order to share ideas, resources, technology research, and best practices in the deployment of integrated services. Issue of resources We are saying HR/Payroll is a place where we should collaborate – it isn’t every person for themselves Need to identify the common threads There needs to be a benefit for each participant – we have to sell this internally even after we all agree to something here Cross-walk between benefits to the whole and benefits for each participant We need to articulate why we should help in this time of “crisis” – this is a packaging strategy that we need to implement Those projects that are collaborative in nature will move forward in the budget process – motivation Collaboration must lead to active decisions – we have to have a formalized decision-making process We need to harness the energy that went into the development of the disparate systems in order to move forward We collaborate when it makes sense for all our organizations

Business (cont.) We will strive for increased efficiencies through the implementation of self-service systems. We are moving data maintenance/ownership to the end user Provided we aren’t adding costs to the system we need to build – in this economic time, we wouldn’t do this just for improved customer satisfaction I don’t agree, we would pay more for self-service - we might not contribute as an Agency to cost savings We will embrace phased implementation in order to reduce risk and recognize system benefits as soon as possible.

Business (cont.) We will advocate for the common IT needs of the HR/Payroll system, for all departments, in order to ensure our goal is realized. We agree in theory, it is very difficult to implement We will emphasize the commonality We want to do this, we just have to put this in business terms our Agencies will understand We think the overall system will benefit and here is the benefit for our Agency We would not be willing to pay more to support the system so “have nots” have access to it There may be unique needs for our Agencies that don’t make this feasible We advocate for the whole and help articulate how our Agencies’ unique needs would not be sacrificed – we help our Agency understand that it is beneficial to accept the direction of the whole if it does not negatively impact our unique business needs What happens when business people advocate for their “unique” business process? If we embrace COTS, we embrace the associated business processes. The biggest problem we run into is dealing with people who have done these processes the same way for decades – they want us to change the application. We need to define standards that the vendor community can use Standards are very difficult to develop in a very diverse environment We need to ensure we have leadership buy-in – otherwise we won’t be successful

Business (cont.) We will help facilitate collaboration among departments in order to achieve: Synergies in purchasing Synergies in applications development deployment Synergies in research and development Enterprise licensing, I jumped on it, but it means we have to have the funding and it is a challenge to modify our funding processes – sometimes there is a gap with synergies in purchasing We will develop plans for the assessment, migration and retirement of duplicate HR/Payroll processes, services and products. Before we retire something, we need to be assured that we will get the same or improved level of service We need to be willing to accept a reduced level of service These need to include consideration of business process changes that will be required We need to distinguish between unique requirements and old business processes – we should consider these unique requirements and understand how they fit into the overall picture Business leaders need to lead the conversation about what common practices should be considered/implemented There needs to be alignment and commitment from leadership in order to make all this work

Business (cont.) We will truly understand the business so that we can challenge and sell/package/market Our common community needs to help support this effort – we all need to be saying the same thing We need to be able to identify the win and where we can all move forward We will establish individual service level objectives that will allow us to monitor and track the state’s HR/Payroll programs and services to determine if stated outcomes are being met.

Technology - General We will facilitate the development of a State business driven architecture that ensures departments can effectively communicate with each other, and share and exchange information as appropriate. We will centralize systems and tools support. We will support the development of shared services to be utilized by agency departments.

Technology - Application We will strive for shared applications and consider purchased applications the first option whenever possible in order to leverage best practices. We will support consistent coding across agencies. HR/Payroll Systems will be accessible by individuals with special needs.

Technology - Data We will centralize common data stores. Agency HR/Payroll data/information is a State enterprise resource regardless of its physical location, and departments will collaborate to manage it as such. We will create and implement a process for the creation, deployment, maintenance and retirement of information.

Technology - Security We will implement security policies and standards that will protect systems, networks, resources, and data from loss and unauthorized access, use, modification, destruction, and disclosure. Insert single user id principle here

Budget Projects will be prioritized based on: Common Business need Statewide ROI Availability of funding Conflicting priorities will be discussed with the HR/Payroll Enterprise Strategies Committee. Agencies will work collaboratively when seeking funding.

Staffing The State will ensure all employees receive the basic training necessary to operate the IT systems necessary to support their business functions. We will ensure outsourcing agreements include transfer of skills and knowledge to State IT and business staff to ensure ongoing support for systems when vendors complete their contracts. We will not initiate a project unless the appropriate staffing is available to support it.

Change Management We will support change management practices in order to ensure successful system deployment. We will ensure all stakeholders are aware of how development and implementation of the HR/Payroll system will involve/affect their lives. We will properly communicate change well in advance. We will clearly articulate the benefits of change. We will clearly define and communicate roles and responsibilities of HR/Payroll project stakeholders. We will give stakeholders an opportunity to provide the HR/Payroll project team members with feedback throughout project implementation. We will ensure Agency leaders are actively engaged in the change management process. We will facilitate stakeholder input and feedback through our governance processes.

Developing Enterprise Implementation Strategies

Enterprise Implementation Strategies We will implement a formalized process to ensure our collaboration leads to active decision-making Establish project governance that ensures timely decision-making while taking into consideration staff input. Develop a business driven technical architecture that establishes capability standards. Identify shared application services that can be leveraged by the core system and interfacing applications. Design data logically to support a single customer based system. Focus business application design on providing customer centric self-service. Implement a single sign-on for State systems.

Enterprise Implementation Strategies Develop a budget allocation process that ensures all Agencies have the funding necessary to support HR/Payroll implementation and maintenance. Establish State enterprise mechanisms to govern and fund the development of new services that address business and technical needs (includes R&D money). Conduct a skills assessment of individuals involved with the HR/Payroll system to determine the training needed to support it. Ensure HR/Payroll system contracts include staff skills transfer requirements.

Enterprise Implementation Strategies Develop and implement a change management program that ensures customer buy-in and use of the new HR/Payroll system. Develop communication mechanisms to ensure stakeholders are provided with timely and clear communication regarding changes (their impacts and benefits).