1. Transitioning to an Enterprise Approach
IPMA Executive Summit
Transitioning to an Enterprise Approach
Facilitators:
Josetta Bull, Gartner
Phoebe Cameron, Gartner

2. Transitioning to an Enterprise Approach
Agenda and scope
Previous Day Re-Cap
Enterprise Operating Principles (cont.)
Enterprise Implementation Strategies
Operating Under an Enterprise Framework
Identify activities and tasks
Identify milestones and expected results
Understand current activities and tasks underway
Discuss priorities
Discuss tracking and reporting
Identify critical success factors
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.

3. Previous Day Recap

4. Previous Day Recap We wrestled with how the following tie together:
Business Direction
Governance
Technology Leadership

5. IT Governance: Stages of Involvement
Generations/Phases: As enterprises become more IT-savvy, they move from viewing IT as a cost to be contained to a vehicle by which to transform their organization and even government itself.
Level of Involvement
Stage 4: Pioneering
Stage 3: Proactive
Stage 2: Reactive
Stage 1: Passive
Where Do
You Fall?
A critical first step in creating an effective IT governance process, either single or multiagency, is to “baseline” council members’ perceptions toward IT and the role IT plays in accomplishing the mission of the agency or the collective mission of multiple agencies. If you start with a frame of reference, it will be easier to identify the level of education that it will take to get the team up to speed. Key elements include attitude toward IT, the IT agenda, IT fluency, IT control mechanisms, IT education, information, managing IT risks and attitude toward the CIO. As the label suggests, a passive council will see no role for itself except in crisis situations. IT is a necessary evil. It is not understood and definitely does not rank high on the council’s top agenda items. A reactive council will respond to the CIO’s proposals, with IT being seen as a cost to be controlled. This council will delegate risks to the CIO, who will be invited to meetings on a situational basis. A proactive council is a little more engaged. It recognizes the IT implications of business initiatives and sees IT as an opportunity that can be exploited. IT budgets are managed within a framework of business strategy, and IT management is delegated but monitored by the council. Few government organizations sport an IT council with a pioneering spirit. These organizations see IT as a core competency, monitoring their IS performance against external benchmarks to maintain leadership. The council is IT-savvy, and formal and deliberate IT education is an agency norm. The CIO is considered a business colleague with an IT specialty. Where does your agency fall on the continuum?

6. Evolution of CIO Role and Enterprise Governance
New Rules/New Realities
Mainframe Era:
Conventional Plus
Functional Head
Operational Manager
Deliver on Promises
Advisor on ‘How to’ Not ‘What to do’
On-Time delivery
Reliable operations
Automate for Efficiency
Alert Line-Mgmt. to IT Investment Opportunities
Distributed Era:
Transitional, Shifting
Strategic Partner
Expectation Manager
Technology Advisor
Align IT with Business
Access to the Executive Invited ‘Seat at Table’
Manage IT Department
Provide Infrastructure
Manage vendors
Reduce Business Process Cycle-time
Set Direction and Secure Benefits from “Selective” Outsourcing
Web-based Era:
Hybrid, Emergent
Business Visionary
Technology Opportunist
Drive Channel Strat.
Member of Executive Team or Assumed ‘Seat’
Jointly Develop Bus./ IT Model; Leverage Extra-structure
Integrate Client/ Supplier Value-Chain
Define Office-of-the Future; Lead effort to Customer-centricity
CIO Role
Key
Responsibility
Business
Input
Major Tasks
System
Objective
Leadership
SPA: By 2002, the primary focus of IT management shifts from operational efficiency and effectiveness to information exploitation and extraenterprise operability (0.7 probability).
By 2002, more than 60 percent of large enterprise CIOs are sourced from “the business” or ESPs, facilitating business/IT fusion and e-process innovation (0.7 probability).
By 2003, 75 percent of Type A and 40 percent of Type B enterprises will have integrated IT planning and governance as key elements of their mainstream management processes to implement strategic business goals (0.7 probability).
The increasing involvement and focus of line management in IT oversight reflects the importance of IT to the attainment of strategic business goals. The advent of e-business and its impact on the business model will cause IT and business leadership to integrate their roles around the transformation of core business processes, and to take advantage of new market and operational opportunities. Due to the pervasiveness of this change, smart governance will play an increasingly key role, de-emphasizing control and oversight in favor of providing appropriate forums for both internal and external stakeholders. Governance mechanisms must facilitate fluid communication and collaboration, and provide efficient connections to the mainstream business decision- making processes of the organization.
Increasingly, IT is an asset and not an expense; as a consequence, CIOs will evolve to a role of asset manager for the very high value resources of the company.

7. 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.

8. Business
We will seek business leadership commitment for enterprise initiatives by presenting a business case that helps them understand the benefits to the State and their Agency (cross-walk between benefits to the whole and benefits for each participant)
We will demonstrate our technology leadership by proposing and championing innovative solutions to business executives
As leaders, who truly understand the business of our Agencies, we will advocate for changes in business service delivery and processes in order to improve the effectiveness of our organization
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 together
As an HR/Payroll community, we will work to find and launch our efforts based on commonality

9. Business (cont.) We will collaborate in order to:
achieve return on investment in support of common goals and requirements
to share ideas, resources, technology research, and best practices in the deployment of integrated services.
We will strive for increased efficiencies through the implementation of self-service systems.
We will embrace phased implementation in order to reduce risk and recognize system benefits as soon as possible.
We will collaborate among departments in order to achieve:
Synergies in purchasing
Synergies in applications development deployment
Synergies in research and development

10. Business (cont.)
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
Or (there is disagreement here)
We need to be willing to accept a reduced level of service
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.

11. Technology - General
We will develop a State business driven architecture that ensures departments can effectively communicate with each other, and share and exchange information as appropriate.
We will develop plans for the effective life cycle management of technologies.
We will centralize (logically, not physically) systems and tools support.
For an HR/Payroll system, does it make sense that we are going to go do our own thing, or are we going to centralize where appropriate.
Find common needs among us and focus on that vs. our differences.
If we want a solid system (incorporating the things we have in common), we should only build it once
We need to ensure we do a good job of identifying where our commonality exists
Have to consider where your information is coming from
Name, employee demographics – that should be kept once and available for appropriate people to access it
Need to determine the reality of uniqueness vs. commonality
Action item – assess the HR/Payroll systems for common functionality – determine where common requirements are so can let people know they aren’t necessarily unique
We need to understand what makes sense to centralize vs. decentralize
Standards and data formats – have the common framework so that systems know how to plug into a distributed architecture
Should we develop this framework together?
Should we talk about common tools to use?
We can talk XML more easily than same applications
We will support the development of shared services and tools to be utilized by agency departments.
What does support mean? It means committed to creation, maintenance, and usage of shared services and tools
What is key here is the funding model – we don’t have a model today that supports this
Shared services vs. shared applications – do we really need two different principles? We need to distinguish

12. Technology - Application
As a best business practice, we will strive for shared applications and consider reuse of applications (internal and/or COTS) the first option whenever possible.
I’m not comfortable with the thought that COTS applications intrinsically include best practices
I think we need to leave the decision up to the FSR process
Best practices are really the business practices, not necessarily the technical practices
We pause to look at the internal and external market before we decide what we want to do
Leverage existing investments
We should consider building ourselves only as a last resort
We consider internal reuse first, then COTS, then other alternatives, build ourselves last
Action Item: We may need to change our contracting rules in order to support this principle – stated that you have to indicate why you can’t do it yourself before proceeding. This is a cultural shift that we have to make.
We will eliminate redundant systems and processes.
HR/Payroll Systems will be accessible by individuals with special needs.

13. Technology - Data We will centralize/share common data stores.
This is embedded in other statements, but this also provides context here again
Concerned that this could confuse people
Worry about the connotation of “centralize”
Agency data/information is a State enterprise resource regardless of its physical location, and departments will collaborate to manage it as such.
Must be secured and managed as an enterprise resource
The advantage of identifying data/information as an enterprise resource is this gives us the ability to leverage it
We will develop and implement data standards (strategy)
We will create and implement a process for the creation, deployment, maintenance and retirement of information.
Managing the life cycle of data/information
Need to ensure the governance structure includes this responsibility (e.g., workgroup under the Architecture Sub-Committee)
Executives need to be actively involved in this conversation – telling us what they need
Data is a very big deal – at the core of service delivery, funding, etc.

14. 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.

15. 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.

16. 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 not initiate a project unless the appropriate staffing is available to support it.

17. 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.

18. Developing Enterprise Implementation Strategies

19. Enterprise Implementation Strategies
We will identify our community’s common goals and requirements.
We will implement a formalized process to ensure our collaboration leads to active decision-making (e.g., expand governance framework).
Establish project governance that ensures timely decision-making while taking into consideration staff input.
Develop a business driven technical architecture that establishes compatibility 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.

20. 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.
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).

21. Operating Under an Enterprise Framework
Identify activities and tasks
Identify milestones and expected results
Understand current activities and tasks underway
Discuss priorities
Discuss tracking and reporting
Identify critical success factors

22. Activities and Tasks What do we need to do first
What is underway currently
How do we prioritize

23. Tracking and Reporting
Who will be responsible to share:
what
with whom
when
Discussion on being outcome focused in reporting

24. Next Steps
How do we get the business leaders to recognize us as leaders too?
Community of Interest HR/Payroll
State CIO next steps