National Association of State Comptrollers The Extraordinary Kansas Financial Management Implementation Statewide Management, Accounting and Reporting Tool - SMART March 23, 2011

2 Kansas Government 108 Organizational Business Units in Kansas Government 54,000 State Employees $13.9 billion proposed Fiscal Year 2012 Kansas Budget Department of Administration created by Statute in 1953 –Division of Budget –Division of Accounts & Reports –Division of Personnel Services –Division of Purchases –Division of Facilities Management –Division of Printing and Surplus Property –Division of Information Systems and Communications

3 Topics  Pre-SMART Environment  Pre-Implementation Phase  Early Activities and Formalization of Vision  Contract Process  Overview, Scope, Objectives & Success Factors  Project Management and Governance

4 Topics (continued)  Implementation Phase  Organization  Change Management  Testing  Conversion & Cutover  Help Desk  Data Warehouse  Go-Live!  Next Steps

5 Pre-SMART Environment

6 STARS, SOKI & Other Central Systems Receipting Revenue Payment Processing Purchasing Agency 1’s Systems A/P Asset Mgmt Cash Mgmt Purchasing Receipting Revenue Grants/ Projects/ Cost Cntrs Agency 2’s Systems A/P Asset Mgmt Cash Mgmt Purchasing Receipting Revenue Grants/ Projects/ Cost Cntrs Agency 4’s Systems A/P Asset Mgmt Cash Mgmt Purchasing Agency 3’s Systems A/P Asset Mgmt Cash Mgmt Purchasing Grants/ Projects/ Cost Cntrs Many agencies using multiple, redundant systems Pre-SMART Environment State Accounting & Purchasing

7 Agency 2 Agency 1 Agency 4 Agency 3 GL RReporting Asset Mgmt Cash Mgmt Purchasing Receipting Revenue A/P FMS Data Archiving Coordinated, Integrated Systems and Functions Pre-SMART Environment State Vision

8 Pre-SMART Environment Systems Central Systems –STARS - Statewide Accounting and Reporting System Placed in production April, 1990 Functionality: General Ledger, Centralized Payment and Deposit Processing –SHARP - Statewide Human Resource and Payroll System Placed in production December, 1995 Functionality: Human Resources, Payroll and Benefits Administration Five successful upgrades completed since implementation –Other Central Systems – Purchasing System (limited use/functionality), Debt Collection System, Interfund System & State Treasurer Systems Over 60 agency administrative systems –Developed because there was no central solution or central solution didn’t meet agency business requirements No transparency website

9 Pre-SMART Environment Taxpayer Transparency Taxpayer Transparency Act Legislation –HB 2368 proviso language Legislative Session –SB 316 – 2008 Legislative Session –Kansas Statutes Annotated 74-72, 122 et seq. The Secretary of Administration shall provide a “searchable website” forThe Secretary of Administration shall provide a “searchable website” for –funds established in the state treasury further defined expenditures and revenuefurther defined expenditures and revenue –compensation paid to public employees –bond debt Website:

10 Pre-SMART Environment Transparency Website - KanView

11 Pre-Implementation Phase

12 Early Activities & Formalization of Vision

13 Pre-Implementation Early Activities Conducted Needs Assessment in 2001 –3,600 business requirements documented Sponsors championed the effort Contracted with Salvaggio, Teal & Associates in 2006 –Updated 2001 Needs Assessment –Developed Business Case Conducted Readiness Assessment Obtained necessary support from stakeholders Developed funding strategy

14 Pre-Implementation Early Activities - Business Case Estimated Project Cost: Budgeted –3-Year Software Costs$ 5.4MM –Implementation Cost Accenture Contract$29.6MM –Hardware$ 3.3MM –State staff$ 6.0MM $44.3MM Estimated Savings: –Retirement of existing systems (central and agency) –Avoidance cost of agency enhancements –Avoidance cost of purchase/development of new systems –FTE reduction/redirection –Reduction in the cost of goods and services –Process improvements/benefits Estimated break-even in 12 years

15 FMS Costs Software Hardware Implementation Upgrades Training Ongoing management & maintenance FMS Benefits/Avoided Costs System savings Decommission systems Don’t implement new agency administrative systems Process-Improvement benefits Reduced cost of products & services vs. Pre-Implementation Early Activities - Business Case

16 Pre-Implementation Beginning in 2007 Contracted with Salvaggio, Teal & Associates (STA) Activities coordinated with STA –Project Mobilization –Quality Assurance and project management support & advice –Perform as-is analysis and create documentation –Assist in the procurement process for software and integration services –Conduct agency shadow system review and create documentation –Evaluate Taxpayer Transparency Act –Conduct Chart of Accounts review and create documentation –Conduct procurement code analysis and make recommendation –Conduct vendor file analysis and made recommendation –Prepare reports inventory –Assist in Implementation Phase preparation

17 Pre-Implementation Steering Committee & Vision Formed Steering Committee –Representation from all branches of Government –Representation from all sizes of the organizational units Steering Committee formalized Vision: Working together, the Sunflower Project will improve efficiency, management decision-making, transparency and customer service for the State of Kansas through the purchase and implementation of a new financial management system that will integrate the State’s workforce, business processes and technology investment.

18 Contract Process

19 Pre-Implementation Contract Process Developed & Released Request For Proposal (RFP) – 6 month process Formed Evaluation Committee and Procurement Negotiating Committee Conducted demonstrations and oral interviews Recommendation made to Procurement Negotiating Committee Developed detailed Statement of Work Negotiated Contracts and awarded to:

20 Overview, Scope, Objectives and Success Factors

21 Pre-Implementation Project Overview Execute the Sunflower Project On-Time and On-Budget Go-Live on July, 1, 2010 – the beginning of State Fiscal Year 2011 Implement a full suite of PeopleSoft Financials (Version 9.0) Use a “Big Bang” approach –Go-Live at same time with all scope and all agencies Replace STARS, SOKI and other identified central systems Decommission over 60 agency programmatic systems Fully integrate SHARP with financial accounting Interface with over 50 agency systems

22 Pre-Implementation Project Scope Time & Labor Projects & Grants Asset Management Accounts Receivable/Billing Purchasing Accounts Payable General Ledger Data Warehouse & Reporting

23 Pre-Implementation Project Objectives Improve efficiency Improve decision-making and reporting Improve transparency Improve customer service Integrate the state’s administrative workforce Integrate and standardize the state’s business processes Integrate the state’s technology investment Strike a balance between central policies, standardized business processes, best practices and decentralization

24 Project Management Success Factors Implement purchasing, accounting, asset management, data warehousing and reporting functions using a single integrated platform that will streamline core administrative functions. Strike a balance between central policies, business process standardization, best practices and decentralization – enabling agencies to configure some elements of the system specifically for their agencies (i.e., workflow routing and budget thresholds) and address the concerns and needs of large and small agencies alike. Move as many financial and administrative functions onto a single software platform and decommission legacy systems, as appropriate, so that agencies can focus resources on the specialized programmatic systems and business processes that are germane to agencies’ missions.

25 Project Management Success Factors Gain efficiencies by eliminating dual entry of data and the need for manual reconciliation. Gain efficiencies by redesigning and automating business processes. Provide the data and analysis tools for agencies to: –measure and improve internal performance –improve management decision-making –to improve customer service. Minimize customizations to the software to reduce software lifecycle costs. Implement the full scope of the project on-time, on-budget and deliver a quality product for Sponsors, Steering Committee, Stakeholders and Customers.

26 Project Management and Governance

27 Pre-Implementation Project Management Determine and communicate Success Factors Identify Risk Factors for assignment and mitigation strategies Develop Issues Log for assignment and resolution Establish process for managing & approving Contract Deliverables Establish Change Control Process for managing & approving modifications Develop process for preparing and submitting Kansas Information Technology Office (KITO) Quarterly Reporting Award contract for Independent Verification & Validation (IV&V) Communicate with State ADA Coordinator

28 Project Management Governance Change Request AuthorityCost ImpactScope ImpactImpact on PS Code Base Schedule ImpactAgency ImpactLaw, Reg, Policy Impact Level 1 Executive SponsorsTBD Any change affecting the “Go-live” date TBDAny changes affecting laws, regulations or other non-A&R policies Level 2 Steering CommitteeChanges over $50K “Significant” impact on project scope (+/-) TBDRecommends changes to Executive Sponsors Level 3 FMS Mgmt Team (CCB)Changes under $50K “Moderate” impact on project scope (+/-) All mods approved by FMS Mgmt Team Any change affecting KITO milestones or other key (internal management) milestones Any decisions/ changes “adversely” affecting agencies Any changes affecting A&R policies and procedures Level 4 Managers All changes affecting cost (+/-) approved by FMS Mgmt Team “Minor” impact on project scope (+/-) “Minor” impact on project activities that do not adversely impact a milestone Configuration decisions benefiting agencies that do not impact cost or do not impact a milestone

29 Implementation Phase

30 Implementation Sunflower Project Timeline Deploy Design Build/Development Test Train Analyze Oct/Nov/DecJan/Feb/MarApr/May/JunJul/Aug/SepOct/Nov/DecJan/Feb/MarApr/May/JunJul/Aug/Sep On-going System Support & Stabilization 2010

31 Implementation Kick-Off

32 Implementation Kick-Off

33 Organization

34 Organization Sunflower Project Team Steering Committee Executive Sponsors Project Leadership: State of Kansas Accenture STA Change Management Team Finance Team Technical Team Project Management CORE DEDICATED PROJECT TEAM

35 Organization Key Roles Secure budget Resolve inter-agency issues Assist with changes to statutes and policies Define and control high-level project scope Provide guidance on cross-agency issues Champion the Sunflower project Membership – 7 Agencies7 Central 1 Bd. of Regents1 Judicial 1 Legislature Secure project resources Address agency issues Propose changes to statutes & policies Identify and manage strategic issues (3-6 months out) Assist managers and Team Leads in problem resolution Resolve cross-team issues, as necessary Control scope, schedule, cost and quality Manage contractual issues with Accenture Executive Sponsors Steering Committee Leadership Team

36 Organization State – Accenture Partnership

37 Organization

38 Change Management

39 Change Management Communication

40 Change Management Agency Change Agents Change Agents Agency Functions Agency Functions Change Management Technical Functional Project Team -General Ledger -Purchasing -Accounts Payable -Accounts Receivable -Asset Management -Projects & Grants -Time & Labor -Data Warehouse -IT -General Ledger -Purchasing -Accounts Payable -Accounts Receivable -Asset Management -Projects & Grants -Time & Labor -Data Warehouse -IT

41 The Agency person(s) primarily responsible to aid successful transition to the new FMS by: Work closely with Sunflower Project Agency Liaison Being knowledgeable of FMS project activities and responsibilities Being aware of the changes the FMS system will have on the agency’s operations Communicating information throughout the agency Managing activities required for the transition Assessing agency's readiness for the transiti on Change Management Agency Change Agents Primary Contact Technical Contact Training Contact Subject Matter Experts

42 Change Management Agency Task List

43 Change Management Agency Task List – Example Task ID 273 – Updates to Department ID Due 3/05/2010 Task ID 272 – Updates to Program Code Due 3/12/2010 Task ID 274 – Updates to Agency Use Due 3/19/2010 Task ID 275 – Updates to Service LocationDue 3/19/2010 Task ID 277 – Updates to Purchasing Business Unit Default Due 3/31/2010 Task ID 280 – Updates to Projects SetupDue 3/31/2010 Task ID 281 – Updates to SpeedChartsDue 4/16/2010 Task ID 278 – Updates to Entry Type/Reason Code Due 4/16/2010 Task ID 279 – Updates to Grants SetupDue 4/19/2010 Time and Labor Agencies Only: Task ID 282 – Updates to Time & Labor Task Group/Task Profile Due 4/1/2010 Task ID 283 – Updates to Conversion of Time Reporter Data Due 4/1/2010 Task ID 284 – Updates to Time & Labor Task Profile/ComboCode Due 4/1/2010

44 Change Management Baseline Readiness Assessment Agencies analyzed in 6 “Areas of Focus” –Progress on Agency Tasks –Primary Contact's Engagement –Agency's Engagement –Agency Assessment of Ability to Achieve Readiness –Effectiveness of Readiness Liaison Relationship –General Comments and Concerns Results based on: –Responses to readiness assessment –Agency type (size, interfaces, etc.) –Project records of task status

45 Change Management Training - Role Mapping Updates need to occur in the Master Workbook provided to your agency by the Sunflower Team Indicate Date Last Updated Highlight all changes in yellow Last Day to submit updates is MAY 14, 2010

46 Change Management Training

47 Change Management General Training Timeline MonthActivity February, 2010Priority Registration has started for trainers and drivers; Next week for agencies who volunteered resources March, 2010Enrollment for all others begins March 1 (Task IDs 88 and 89) March, 2010Phase 1 Training – Pre-requisite WBT Released and Tracked (Task IDs 257 and 259) April 5, 2010Upper Level WBT and ILT begins OngoingSMART Training will be provided as long as we have SMART!!

48 Change Management Training Course Catalog

49 Change Management Training Course Catalog

50 PRODUCTIVITY TIME END of JULY/AUGUST: “I’m learning SMART and starting to get comfortable; this might just work” BEYOND OCTOBER: “I’m learning how to use more advanced features of SMART to meet agency business challenges; I’m excited!” MAY/JUNE “I can do this task in 10 minutes” JULY/AUGUST: “This takes me 2x -3x longer than the way we used to do it; I’m confused and frustrated” AUGUST - OCTOBER: “I know SMART better and shortcuts; I’m back to where I was; I can do this task in 10 minutes” Change Management Expectations Setting

51 Testing

52 Test Sequence & Schedule Test StageStart Date Finish Date Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Unit Test7/1/0910/23/09 Assembly Test11/3/0911/30/09 * Conversion Test 10/30/094/16/10 System Test11/2/094/16/10 * Interface Test9/1/092/1/10 Performance Test 11/2/094/16/10 * User Acceptance Test 1/1/104/30/10 Disaster Recovery Test 2/1/104/16/10 Operational Readiness Test 4/1/106/11/10 Functional Team Dev. Team Interface Team Conversion Team Technical Team All Teams * - Indicates a test stage that requires agency participation

53 Conversion & Cutover Cutover Stages Dry Run –Completed 3 months prior to go-live Disaster Recovery Testing –Completed 3 months prior to go-live Conversion Testing –Completed 2 ½ months prior to go-live System Testing –Completed 2 ½ months prior to go-live Performance Testing –Completed 2 ½ months prior to go-live

54 Conversion & Cutover Cutover Stages (continued) End User Testing –Conducted 2 months prior to go-live Dress Rehearsal –Conducted during the 3 rd month prior to go-live Operational Readiness Testing – Conducted during the 2 nd month prior to go-live Deployment – Began the month before go-live

55 Conversion and Cutover

56 Conversion & Cutover Integration Project Costing Time & Labor Billing Accounts Receivable Contracts General Ledger Accounts Payable Purchasing Payroll Human Resources Grants Est. Amounts Payroll Expenses Encumbrances Payables Journals, F&A, Budgets Payables Payroll Expenses Billing Status Update Unbilled AR AR Cash Project Data Billable Transactions Invoiced Amounts Personnel Data Award Data T&L Data PO Data Asset Management

57 Conversion & Cutover Sample of Agency Impact

58 Conversion & Cutover Sample of Agency Impact SMART

59 Conversion & Cutover Interface & Conversion Timeline 2009 Jul/Aug/SepOct/Nov/DecJan/Feb/March Online Data Entry Preparations Agency Conversion Data Cleansing Interface Testing Cycles Conversion Assembly Test Extract Conversion Data Mock Conversion Testing (Mock 1, 2, 3) Connectivity Testing Agency Interface/System Modifications Conversion Build and Unit Test 2010

60 Conversion & Cutover Interface & Conversion Timeline Agency Conversion Data Cleansing Interface Testing Cycles Cutover Activities Extract & send final data files We are Here! Mock 1 Conversion Testing Mock 1 Conversion Testing Mock 2 Conversion Testing Mock 2 Conversion Testing Mock 3 Conversion Testing Mock 3 Conversion Testing 2010

61 Conversion & Cutover Cutover Timeline May June JulyAugust Agency Data Conversion & Validation STARS Shutdown 06/29 Last day for Agencies to Enter Transactions in STARS SMART Go-live SHARP Cutover 06/23 Go-live for Time and Labor and SHARP II open to all users 07/01 Agencies Enter Transactions in SMART Preparation & Administrative Activities Load Appropriation & Op Budgets into SMART SOKI Shutdown 07/06 Last day for Agencies to Enter Deposits in SOKI Load Purchase Orders/ Encumbrances into SMART

62 Conversion & Cutover Excerpt of Agency Calendar

63 Conversion & Cutover Go-Live Readiness Checklist Key tool in the Go-Live readiness process –Assisted in the preparation for go-live on July 1, 2010 –Used in conjunction with other tools Agency Task List Agency Readiness Assessment –Helped focus readiness efforts on the most critical areas Risk and Issue Identification Mitigation Steps –Provided the project with agency preparedness status

64 Conversion & Cutover Agency Guidance – Fiscal Close

65 Help Desk

66 Help Desk Agency Support “The SMART help desk provides prompt, professional support.” The help desk will be the initial support provided to agencies when they encounter incidents in SMART Incidents are questions or issues that interrupt the ability of the SMART end-user to be productive

67 Help Desk Support Structure

68 Help Desk Incident Resolution Process

69 Data Warehouse

70 Data Warehouse Access and Reporting Data Marts are a functional grouping of data used for reporting. Data Warehouse Data Warehouse Reporting Human Resource Data Marts Financials Data Marts Transformed Data SHARP SMART

71 Data Warehouse Reporting Capabilities Oracle BI Answers Simple – Drag/Drop Fields onto Report Complex – Filters, Formulas, Format, Prompts, Sort Order Results – Pivot Tables, Dashboards, Plain Text Drill-down to details Oracle BI Publisher Highly formatted Report layout using familiar tools (e.g. Word, Adobe) Data from BI Answers Oracle BI Dashboards Intuitive Personalized Drill-down to details My Dashboard – Data Warehouse Home Page

72 Go-Live!!!

73 Go-Live!

74 Go-Live! Statewide Management Accounting & Reporting Tool, SMART, went live as planned on July 1, 2010! SMART is the largest statewide implementation of PeopleSoft ever executed. –108 Organizational Business Units –16 PeopleSoft Modules The Sunflower Project was executed: –On Time –On Budget –With all planned scope –All central systems in scope were decommissioned –Over 60 agency administrative systems decommissioned The SMART system is effectively stable with respect to batch processing and performance

75 Go-Live! Exceptional engagement by business units Success Factors were always kept in mind Over 3,000 state employees have access to SMART Over 1,100 state employees are accessing SMART each day A Service Center established to provide administrative support to 35 agencies, boards and commissions The Help Desk has logged over 21,000 Help Desk tickets, with approximately 350 still open A Vendor Payment Self-Service website developed and implemented 100% participation in the electronic payment of payroll

76 Go-Live! Accenture was an exceptional partner Oracle’s PeopleSoft product was absolutely the right choice for Kansas Salvaggio Teal & Associates was an exceptional resource The dedicated project team was committed to excellence and knowledge transfer Success Factors were always kept in mind All risks and issues were aggressively managed and resolved Change Control Process was strictly managed Kansas Information Technology Office (KITO) Quarterly Reporting –Sunflower Project metrics were always above 90% and were usually 100% Independent Verification & Validation (IV&V) –Sunflower Project was always evaluated as “Excellent” or “Very Good” Lessons Learned have been documented

77 What’s Next?

78 What’s Next? Near-term: Implementing functionality for select agency use of Time and Labor Began SHARP upgrade in January, 2011 Prioritize and schedule “Phase II” activities Act on focus group recommendations Enhance the Data Warehouse Complete conversion of training materials to software application Survey agencies for status of decommissioned systems Complete PIER review Identify and engage new Steering Committee members KanView enhancements

79 What’s Next? Long-term: Upgrade SMART, SHARP and the Data Warehouse Develop Five-Year Plan –Larger Enhancements/Implementations Implementation of additional modules/functionality Prioritization of identified modifications/enhancements Integrated Imaging Solution –Smaller Enhancements Additional Queries & Reports Agency-Specific Configurations Additional Outbound Interfaces

80 Recognition Governor Mark Parkinson Secretary of Administration Duane Goossen

81 Recognition

82 Questions? Kent Olson, Director Division of Accounts & Reports Kansas Department of Administration (785)