1. DMV’s Service Transformation Program AASHTO Auditor’s Conference Tom McClellan, DMV Administrator and Dawn Farr, Interim STP Lead Oregon Department of Transportation, Driver and Motor Vehicle Services Division July 22, 2015

2. Presentation Overview 2  Auditor’s Points of Interest  Business Case  Goals of Service Transformation  Approach to Transformation  Challenges Ahead  Audit Considerations  Questions DMV’s Service Transformation Program

3. Auditor’s Points of Interest 3 Goals and Metrics Internal Controls Transparency Documentation Risk Mitigation Leadership Collaboration with Internal Audit Team

4. Business Case for Transformation – Video DMV’s current business processes 4

5. 5 Key Drivers of Change  Business systems difficult to use  Limited online services  Error prone, paper- centric business processes  Inadequate financial and fee reconciliation tools  Antiquated document management  Expensive to adapt to legislative changes DMV’s Business Case Not a matter of if, rather when

6. DMV System Limits Enterprise-wide Improvements STP benefits more than just DMV customers 6 Record Purchasers Oregon Courts ODOJ Law Enforcement SOS Elections Insurance Providers Financial Institutions DEQ State and Federal Government Car Dealers DMV

7. Limited & Inflexible Functionality 7 Opportunity to reinvent DMV Technology is an Enabler of Business Transformation From To Multiple & Adaptable Functionality

8. DMV of the Future What our customers might experience FROM TO 8  More services online  Real-time automated systems  Adaptable systems  Real-time records access  Enabling business partner innovation  Culture of continuous improvement  Waiting in-line  Paper-centric, error prone transactions  Inflexible systems  Limited, manual records access  Constraining our business partners  Limited ability to continuously improve

9. Improved customer services More efficient business processes Increased flexibility Enhanced fraud protection, business security and controls Real time access to data information Service Transformation Program Benefits 9

10. Efficiencies example: Vehicle Title and Registration Today’s business process 10

11. Vehicle Title and Registration Vision for the future – Phase I 11 Electronic Application Data Verified Electronically Electronic Requirements Check Immediate Correction Title Ordered Title Accurate Fix Ok Paper Title Mailed Out

12. Approach to Service Transformation Phased deployment across key business areas Readiness Planning Data management, imaging, point of sale, website (DMV2U) and other interconnected systems Vehicle Title and Registration Driver Licensing Records Biennia: 2015-17 2017-19 2019-21 2021-23 2023-25 12

13. Key Deliverables:  Complete readiness planning activities  Procure Vehicle Title and Registration system  Launch online transaction center—DMV2U  Procure Point of Sale and Dealer Systems Approach to Service Transformation 2015-2017 approved budget, $30.4 million 13

14. Approach to Service Transformation Technology enabled business transformation Rigorous project management Communications and Transparency Effective Governance STP pillars of transformation 14

15. Technology Enabled Business Transformation Ensure business and technology are aligned 15  Establish Vision for DMV of the Future  Document Current/Future Business Processes  Prepare Leaders  Define Future Staffing Plan  Develop Organizational Change Management Plan

16.  Benchmark against others  Follow best practices  Use third party quality assurance  Manage contracts/vendors  Transparent reporting on risk, schedule and budget  Control scope  Develop organizational change management plan Rigorous Project Management Be Disciplined, Follow Proven Practices and Standards 16

17. Communications and Transparency Be persistent and consistent 17 Goals:  Awareness Building  Program Support  Feedback  Educate Target Groups:  Policymakers  Stakeholders  Customers  Employees

18. Effective Governance Commit to transparency and accountability 18 ODOT Executive Steering Committee DMV Management Team Weekly Meetings User Council Ad Hoc Meetings Oregon Transportation Commission ODOT Director DMV Administrator Legislative Work Group State CIO, LFO and Independent QA DMV Office of Transformation Manager

19. Challenges Ahead 19  Coordination  Participation  Pace  Focus  Constraints Identifying risk

20. Challenges Ahead 20  Learn from others  Use proven tools and processes  Establish an empowered STP leadership team  Define clear lines of authority and accountability  Recover from missteps  Hire the right experts Mitigating risk

21. Recap of Audit Considerations 21 Goals and Metrics Internal Controls Transparency Documentation Risk Identification Mitigation Leadership Collaboration with Internal Audit Team Goals defined, metrics under development Governance, Stage Gate, adherence to P.M. best practices and existing policies Governance, Communications Plan Planning docs., Project Management Plan, QA reports Project QA vendor, program advisor Governance, leadership development Inclusion in ODOT Internal Audit Plan STP Approach

22. DMV Service Transformation Program Questions? Tom McClellan DMV Administrator Thomas.L.MCCLELLAN@odot.state.or.us 503-945-5100 Dawn Farr Interim STP Lead Dawn.E.Farr@odot.state.or.us 503-945-5353 22