Moving from money well accounted for to money well spent UK Information Technology Summit May 2005 Helen McDonald A/Chief Information Officer Treasury Board Secretariat

2 The Context Well on our way to achieving the Government On- Line objectives established for end 2005 But services not re-engineered, external focus, opportunities lost by not acting as an enterprise Budget 2005 committed to changing the way government works Improved service quality and efficiency Reinforced public service capacity Strengthened governance and accountability Sound stewardship of public resources

3 Gross IT Spending 4,278 4,339 4,728 4,750 4,951 $3 M $4 M $5 M 99/0000/0101/0202/0303/04 Government of Canada spent $5B on IT in Adjusted for inflation, spending has been close to flat, negative if HR removed

4 GoC Performance Government projects large, risks commensurate Project management and approval oversight addressed  Enhanced Management Framework provides process and tools  Treasury Board approval and tracking of larger initiatives Efforts today necessary but not sufficient  Project management rigour does not ensure horizontal alignment or outcome success

5 Project Management Today Business case methodologies set out the problem, options, costs and timeframe Once an option is selected, project is monitored based on budget, schedule, resource utilization… The implicit assumption: If the project is on time, on cost, with full functionality then the benefits will be realized The assumption is false: Good project management is necessary, but not sufficient to obtain the desired outcomes. Outcomes must be proactively managed

6 Realizing Outcomes Value Management Project Management Outcome(s) focus Program management Opportunity-seeking Value optimisation Product delivery Project management Budget and schedule Cost optimisation Outcome management – practices and processes that focus on the delivery of organizational goals and priority outcomes Three dimensions: Strategic alignment Performance measures Risk

7 The Payoff Investment plans, assets, projects and transformation programs that: Are aligned with business strategies Deliver clear and measurable outcomes Have high likelihood of delivering benefits and value for the enterprise (therefore, for citizens and businesses)

8 IT Services Review 92-95% of IT expenditures within each department or agency with minimal GoC-wide optimization Significant opportunities to move to common and to “Act as One” Distributed computing (managing desktop) Data centre services (equipment acquisition and operations) Web hosting services Private / Public sector experience: significant efficiency and effectiveness gains, with investment

9 Common IT Services IT Shared Services Organization  Preliminary planning in process Distributed Computing Services  Common Service – Spring 2006  Common OA Suite – Fall 2006  Common Desktop Service – Spring 2007 Data Centre Services  Preliminary planning (Mainframes) – Summer 2005  Initial Consolidated Services– Spring 2007

10 Managing as an Enterprise Enterprise governance Common definition and view of business lines Common view of the client we serve Common business processes across all lines of business and shared enterprise information Common identification of employees Common measurements against corporate goals A single infrastructure to support services

11 The Payoff Integrated services across different departments, agencies and other levels of government Elimination of duplication, streamlined requirements and processes Consistent services delivered to citizens across all channels Government-wide alignment and stewardship of strategic investments

12 Enterprise Approach Portfolio Program PlanBuild Operate Project Enterprise

13 Holistic Approach Renewed enterprise policy suite Common services policy, TB submission guidelines Modernized management practices Common language: Management, Resources and Results Structure Enterprise business and services architectures Outcome management Portfolio (horizontal) management Integrated measurement framework

14 Holistic Approach … Enterprise governance DM service transformation committee Common / shared services Strategic investment fund Increased investment in people and communities Improved decision support Ongoing review of government-wide spending Regular assessments of department management Increased capacity for strategy development (technology, information, service)

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