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

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

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

4. 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

5. 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.

6. 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

7. Governance Board & Processes

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. 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

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

19. 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

20. 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

21. 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

22. 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

23. Work to Date cont.
M&O Plan Excerpt

24. 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

25. 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”

26. 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