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Program Controls - Lessons from Three Programs

John Turner

Gafcon

The Problem

The Desired Solution

■ All bond outcomes delivered

■ All stakeholders happy

■ So how do we get there?

Comprehensive Decision Management

Program Controls is responsible for packaging the data to enable correct decisions. Program and Project Managers must still make the decisions

Experience

San Diego Unified

Pay contractors correctly, on time, every time!

Accountability: Bring all

stakeholders into processes

Maximize the ability to approve

items electronically

Enter data once and report many

times

Audit compliance and Reporting

according to state and local

requirements

Integrate existing data sources with

Unifier

Transparency: Protect the taxpayer’s investment

Maximize user adoption:

Mobile applications

Simplicity

Meet user’s needs

Needs

■ Single Platform

▪ Supports all functions

▪ Find things quickly

■ Deployment anywhere

▪ PC, Tablet, Phone

■ Role based security

▪ Corporate and contractors

■ Real time visibility

■ Flexibility

▪ Configure vs customize

■ Minimal Training

▪ Sophisticated functionality

but simple interface

■ Compliance with process

▪ Work flow

Guiding Principles

■ Governance

▪ Provide the ability to predict the outcome

■ Visibility

▪ Know what is happening without impeding progress

■ Participation

▪ Make it easier to use the system than invent an alternative

System Principles

■ Control

▪ Move everything efficiently through the process

■ Compliance

▪ Prove everything is on the most efficient and correct path

■ Coordination

▪ Provide what is needed when it is needed and in the form that it

is needed

Accountability, Communication and Transparency

Program Perspective

Project Perspective

Duplication of work

■ Multiple systems

▪ Cost accounting

▪ Financial accounting

▪ Scheduling

▪ Document Management

▪ Reporting

▪ Risk Management

▪ Email

▪ Word

▪ Excel

Three Programs

■ Los Angeles Community College District ▪ $6.3B

▪ In 12th year, with two previous program managers

▪ Multiple historical systems including custom applications

▪ Program and Project Management Plan (PPMP) not fully implemented

▪ Reporting could be simplified

SDUSD

■ Three capital bond programs since 1998

• Prop MM - $1.5B 1998 -2008

• Prop. S - $2.1B 2008 – 2028

• Prop. Z - $2.8B 2012 - 2028

■ 226 educational facilities

■ Second largest in California

■ Focus on

▪ New build / Renovations / New classroom technology / Security / Sustainability

■ Migration from Primavera CM13

■ Integration with PeopleSoft ERP

Grossmont Cuyamaca Community College District

■ Proposition V – $398M bond ■ Follow on from Proposition R - $318M ■ No data migrated

▪ Additional funds managed by program

■ Two phase release process ▪ Pre-construction activities

▪ Construction activities

■ First introduction to workflow application

Lessons Learned

■ There is no “one size fits all” solution but there is substantial commonality

■ Technology is not the problem

▪ The processes must be understood and documented (PPMP)

▪ The interaction of people with process is the cause of most

issues

▪ Technology enables the process – if the process is bad

problems will pile up faster

Lessons Learned - Process

■ Build across functional groups

▪ Eliminate duplicate data entry

▪ Eliminate external integration

■ Every Process must be owned and managed

▪ Common Processes

— Owned by a neutral party

▪ Functional Group only Process

— Owned by the functional group

▪ Cross Group Processes

— Someone must own it, everyone cannot

Contract Approval

Owner Change

Invoice Approval

Lessons Learned – Data Migration

■ Think before you commit

▪ It can be expensive and time consuming

■ Alternatives

▪ Use for new projects only

▪ Only migrate live projects

▪ Migrate to a data warehouse for integrated reporting

Lessons Learned - Integration

■ Three types

▪ Manual

— Multiple entry into systems

— Not recommended due to manual errors

▪ Batch

— Cheapest approach

— Normally daily update

▪ Web Services

— Most expensive approach

— Only approach if real time update required

Discussion - Integration Approach

Vendor Contract

Task Order

Service Order

Purchase

Order

Change Order

Invoice Received

Invoice Approved

Payment Check

Number

Transfer Journal Entry

Integration impacts procurement, contracts and payments.

Recommended Option

Making Unifier the prime system simplifies integration.

Accounting System Centric

Short pay status adds another integration (not shown)

Making the accounting system prime adds integrations.

Integration Questions

■ At what level of detail will the accounting system function

▪ Full WBS or CBS/general ledger

▪ Schedule of values

▪ Electronic invoicing mapped to WBS

■ Integration with Change Order process

▪ Potential, probably, actual change

▪ Alternatives and estimates

■ Approach to partially paid / on hold invoices

▪ May need additional integration for each stage

■ Release cycle of accounting system

▪ When can changes be made?

No one size fits all …. but

■ There is a need to start somewhere

▪ A clean sheet of paper

▪ A full implemented but rigid solution that forces you into a “best

practice”

▪ Or pre-configured solution with ability to configure to

specification

The Solution

Project Perspective – Business Process Distribution

Benefits Summary

■ Lower Program Management costs through fully implemented

technology platform

▪ Out of the box configuration reduces technology start up costs

▪ Greater automation and collaboration reduces team size

▪ Enablement of comprehensive decision management results in

better decisions faster so eliminating repeat work

▪ Established and tested business processes ensures compliance

to policy and clean audits so eliminating corrective actions

▪ Transparency of efficient management ensures public

confidence and acceptance of repeat bonds at lower cost