Joyce Adu, PhD

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The Governance of Major IT Projects Case Study
IT Refresh Program
Joyce Adu, PhD Centrelink Project Management and
Organisational Change 2006
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Agenda
Outline

• Centrelink Context
• IT Governance Framework
• Case StudyRefresh Program Governance

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Centrelink Context (1)
63.1 B
25 Purchasing agencies
25,312 staff
6.48 M Customers
87.2M Letters
39.5M Web hits
1000 Services Delivery Pts
32.6M Phone calls
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Geographical Locations
Centrelink Context (2)
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IT Governance is in the context of Corporate
Governance
Centrelink Context (3)
Broadbent (2004), adapted from Weil Ross (1994)
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IT Governance Framework (1)
Components
Leadership
Direction Value
IT Governance Framework
Structures
Arrangements, Rules Relationships
Processes
Flow of events practices
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IT Governance Framework (2)
1. Leadership Direction, Alignment Value

• Good governance is about making sure what the
  enterprise needs is what the enterprise gets

COBIT Framework (2000)
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IT Governance Framework (3)
2. Structures Arrangements, Rules.
An effective IT governance structure is the
single most important predictor of getting value
from IT. Peter Weill and Richard Woodham, Dont
Just Lead, Govern, April 2002
How implemented?
Who Makes them?
What decisions
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IT Governance Framework (4)
2. Organisation Structure
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3. Processes Formal Investment Decision Making

IT Governance Framework (5)
Concept
Concept Filter
Project Feasibility
Planning
Implementation, Closure Review
Business Case Development
Project Management Plan (PMP)

• Reporting
• Financial
• Milestones
• Variations
• Risks Issues
• Benefits

Proposal (Based on Template)

• Government Policy
• Budget

• Impact assessment by
• IT Teams
• IT Demand Capability
• Architecture
• Infrastructure
• Application
• Corporate Teams
• Costing
• Strategic Planning
• Business Teams

Project Sponsor/Steering Committee approves PMP
Register

• New Business
• Purchasing Depts

High Level Impact Assessment

• Projects
• Strategic Directions
• IT Asset Renewal

Quality check of business case

• Maintenance
• IT
• Business
• Purchasing Depts

IMPC decision/ approval
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Case StudyRefresh Governance
Framework Components
Structures
Structures
Leadership
Processes
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Case StudyRefresh Governance
Why Refresh
Operating Costs - Business
Operating Costs - IT
No. of Transactions (daily)
No. of Customers
Unsustainable trends without technology upgrade
DSSlt--gt Centrelink
No. of Staff
CPU Utilisation (MIPS)
1980 1990 2000
2010
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Case StudyRefresh Governance
Leadership Direction (1)
Specific Outcomes

• Self service and business to business information
  transaction through automated channels will
  enable ease of access and savings in administered
  departmental funds.

Provide Centrelinks services on-line to
customers, business and other stakeholders
Overall Objective
Rationalise existing technology and reduce IT
costs
Promises to Government Kept Centrelink has an
improved and sustainable technology capability to
cope with future demands Financial benefits
delivered

• Technical infrastructure to properly handle
  security needs and volume of business over the
  internet.

Reduce the risk of Systems Failure

• No significant failures
• Stress fractures addressed.

Faster and Cheaper IT Developments

• Well supported service delivery and ability to
  provide solutions to new government policy and
  programs more quickly at less cost.

Deliver savings in departmental and administered
costs

• On-line and technology savings
• Non-IT departmental savings

Deliver substantially improved management
information

• Timely and accurate performance information to
  support internal and government decision making.

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Case StudyRefresh Governance
Leadership Direction (2)
Data management
Enhanced security
Improved infrastructure
Savings
Improved reliability of systems
Online services for customers and business

• CUSTOMER BUSINESS
• Online claims for Students, Apprentices and
  Families due to Refresh generic capability
• Self registration gives greater incentive for
  customers to use online services
• ECXPert increases use of Centrepay and Customer
  Confirmation
• Electronic data exchange with financial
  institutions
• Electronic income reporting with Coles Myer Ltd.
• iRAS improves Centrelinks out servicing and
  outreach service models
• Rate calculator upgrades advise customer
  immediately of potential debt

• DEVELOPMENTS
• J2EE environments support Staff and Customer
  Portals
• Information hub other WoG activities
• Network diagnostic tools quickly identify source
  of network problems
• Increased internal security
• Improved data exchange between government
  agencies (Fedlink)
• Lower cost of mainframe processing and deferment
  of mainframe upgrade
• Improved development tools and methodologies
• Application Development Environment provides
  better tools and testing facilities
• Infrastructure strengthened to support increased
  online use

REFRESH
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Case StudyRefresh Governance
Leadership Value/Benefit Realisation

• Refresh uses a formal methodology for identifying
  and tracking the realisation of benefits.

Refresh Promises
to Government
Project Responsible for putting
Deliver savings in
Area Network Accountable for
functionality in place and
Departmental and
Harvesting Benefits
demonstrating reduced effort
Administered Costs
1. The IT Refresh program
June
An example of the value chain technique used to
identify and manage risks and dependencies in the
realisation of benefits
will provide
portfolio
Release
10 min
savings in administered
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effort on
funds
through real time
Functionality
Work is
500,000
validation of customer
debts per
scheduled
circumstances with external
year
into release
parties, in areas of known
opportunities that can't be
efficiently addressed with
current technology.
2. The Refresh will provide
departmental savings for
Centrelink
by reducing the
need to support a diverse
range of software and
Reduced
Debt
Ability to
hardware acquired
September
Effort for
Calculation
demonstrate
independently for particular
Release
Debt
Staff
reduced
initiatives and by
Functionality
Calculations
Reduced
effort
introducing efficiencies in
debt calculation process.
3. The Refresh will provide
the customer portal
software and hardware that
the Customer Account
project requires to deliver
customer self-service.
Benefits
Debt Calc
Tracking in
Staff
4. The Refresh will provide
December
Place
Reduction
systems that will
enable
Release
Strategy
state and local
Functionality
governments to verify
entitlement to
Concessions.
Initiative
Assumption
Outcome
Benefit
Contribution
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Governance Structure
Minister

• Governance Focus
• Portfolio Outcomes
• Realisable Benefits
• Unquantified Benefits
• Milestones
• Whole of Government Value

CEO takes central accountability and chairs the
Oversight Committee. The Oversight Committee
monitors, recommends and unblocks the broader
space.
Secretary DHS
Oversight Committee
CEO
Centrelink Executive

• Centrelink Outcomes
• Right Way
• Right Resources
• Right Transformations
• Right Projects

The IT Strategic Committee directs and monitors
the progress of the Refresh Program. It makes
the go/no go decisions and informs the Investment
Major Programs Committee of progress.
Investment Major Programs Committee
IT Strategic Committee
External Stakeholders

• Program Outcomes
• Provide Program Leadership
• Oversee Delivery
• Ensure Benefit Realisation

The Program Sponsor takes responsibility for the
successful delivery of Refresh both business
and IT aspects. NM Refresh Planning coordinates
the program delivery.
Refresh Program Sponsor
Internal Stakeholders
Sub Program Committee
NM Refresh Planning
Subprogram Sponsors
Refresh Program Office
Project Managers are responsible for the day to
day management of their projects. They have
responsibilities to their sponsors, NM Refresh
Planning the IT Key Solutions Managers for
project outputs and progress reports.

• Project Outputs
• Manage Projects
• Report Progress

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Case StudyRefresh Governance
Processes
Refresh has a comprehensive set of governance
controls and processes

• Tracking and Control
• Financial Controls
• Procurement Management
• Risk Issue Management
• Review Processes
• Communication Processes

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Centrelink REFRESH Program High Level Schedule
July 2003 June 2008 as at 31 January 2006
Achievement (Met or Expected) Achievement
(varied) Goal
- More Services Online -
Under Review
More Services Online
Customer
1.2 Customer Online
Customer Portal including capability
for DHS/Whole of Government approach to online
services for customers
Initial Customer Portal
Portal for Families Customers
Capability to include cross agency information
Generic capability for customer self-services,
including claims and reporting
Online Capability for Customer Services
Multi-channel self service capability
Student Claims for Apprentices
Student Online Claims (COLF)
Student Claims (J2EE)
Online Claim for Families (COLF)
Online Claim for Families (J2EE)
Business Outcome Delivered Centrelink has the
ability to deliver on-line services to staff,
customers and businesses. This includes
self-service applications as well as automated
business-to-business information and transaction
exchanges which could be supported by smart card
technology. Businesses have a lower cost of
compliance in dealing with Centrelink. Centrelink
s delivery of self-service through automated
channels approaches that of banks and other
institutions. Other government agencies have
improved access to Centrelink services. Portals
for customers, staff and business.
Business
1.13 Org Central (Business Partner Repository)
B2B Repository established
Phase 2 Data population complete
Phase 1 Data cleaned for migration to new system
Phase 2 Data cleaned for migration to new system
Phase 1 Data population complete
Single enterprise view of organisations who deal
with Centrelink for simpler access to Centrelink
Services through single sign-on
1.8 Staff Online
Staff
Customisable web services for staff
Foundation Portal for Staff Portal
Staff Online services and information
1.7 Foundation Portal
Supporting functionality for portal services
Omnifind Enterprise Search Engine available for
use
All
Portal Technology for staff in place
Portals as key business delivery mechanism
Pilot B2B application eg. DVS
5.2 products installed
Migration off ECXpert started
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Case StudyRefresh Governance
Procurement
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IT REFRESH ACHIEVEMENTS

• Increased telephone web-based self service
  options
• Capability capacity upgrades to existing
  middleware
• Transfer of more than 23m online document records
• Enhancements to mainframe systems

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PLANNED FOR 2005-06

• Customer Portal
• Deployment of key infrastructure for the delivery
  of all online-related applications and
  environments
• J2EE ADE Environment (various aspects)
• Consolidated and rationalised midrange DEV/Test
  environment
• Rationalisation of non-M204 databases

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PLANNED FOR 2005-06

• Improved service monitoring, fault identification
  and rectification
• ITSM introduced
• SOA, supporting guides and tools in place
• Meta data standards for interoperability and data
  exchange

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Case StudyRefresh Governance
Challenges

• Overcoming silo cultures
• Competing organisational priorities (resources)
• Measuring return on investment
• Testing the boundaries of existing legislation
  with e-government

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Key Messages

• IT Governance is seen as an integral part of
  Corporate Governance
• IT Governance Framework is in place to address
  transparency, decision-rights and accountability
  needs
• IT Governance Framework has been successfully
  used to govern Refresh.

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Comments/Questions?