APPENDIX G: Implementation Planning and doc/S04-CL-C-00… · Recommendations relating to implementation plan 1 Summary • Recommendation 7: Council to approve an investment in the

APPENDIX G:Implementation Planning

Consultancy ProjectFinal Report

14 May, 2004

Recommendations relating to implementation plan

1

Summary

• Recommendation 7: Council to approve an investment in the order of CHF 5m to implement our recommendations

• Recommendation 8.1: Council to endorse implementation milestones in line with full implementation by the 2006 regular session of Council, ahead of the Plenipotentiary Conference of 2006

• Recommendation 8.2: Council and the Secretary-General to agree on working arrangements and oversight procedures for implementation of these recommendations

This implementation plan is developed on the assumptions that Council will approve these Recommendations

Additional materials forming the basis of this plan include:• Detailed descriptions of initiatives to implement recommendations• Detailed cost estimates for each recommendation in Excel model

This implementation plan is developed on the assumptions that Council will approve these Recommendations

Additional materials forming the basis of this plan include:• Detailed descriptions of initiatives to implement recommendations• Detailed cost estimates for each recommendation in Excel model

Contents

Contents Appendix page. ref.

• Milestones and deliverables

• Linkages between Recommendations

• Costs and Benefits

• Implementation governance

• Risks and change management

3

19

24

34

37

2

Contents

Milestones and deliverables

3

Key milestones which form the basis of our detailed implementation plan(in line with our recommendations and final report to Council)

Date Milestones

Council session 2004 • Presentation and discussion of Recommendations in Council• Council decision on Recommendations and implementation modalities

1/10, 2004 • Implementation of Rec.s 1 & 2 well under way and pilots initiated• Short-term IT enablers in place: strategy, governance, processes

1/1, 2005 • Roll-out of time tracking and SLAs across ITU

4

1/5, 2005 • First results-based quarterly financial report to membership• First meeting of Planning and Budget Advisory Group (PBAG)

Council session 2005 • Council approval of first results-based budget• Adoption of revised financial controls for cost recovery income

1/1, 2006 • Roll-out of core IT systems completed• Rationalisation of IT architecture well under way

Council session 2006 • First results-based annual report to Council• Transformation of ITU-wide IT services completed

Two-year timeline for implementation of recommendations, front-loaded for new budgeting and cost accounting procedures in first 12 months

Milestone

5

Implementation phase

Develop and pilot IT tools

Prepare launch• Train staff• Complete

Service Level Agreements

• Define roles and responsibilities

Governing body sessions

1/10 1/4 1/7 1/10 1/4 1/7

Council2004

Council2005

Council2006

Put in place short-term IT enablers: strategy, governance, processes

• Roll-out core systems: SAP, HR Access, Documentum

• Re-engineer adm. processesRationalise IT architecture, organisation and spend

Expand new uses of IT

Revised Information technology strategy

Revised budgeting and cost accounting procedures

1/7 1/1/2005 1/1/2006

Launch revised cost accounting procedures and service level agreements

Begin new quarterly reporting• Output-based

financial reporting• Service delivery

reportingCouncil to approve 2006-07 results-based biennial draft budget

Roll-out and results-based budget formulation

Council to adopt strengthened financial controls

Council to endorse implementation plan

First results-based annual report to Council

Detailed overview of deliverables and milestones (1/13)

Recommendation Deliverables Milestone Responsible

1.1 Introduce a consistent planning 'hierarchy' across all of ITU that will link Sectors' objectives to budget Outputs and to operational plans, and will form the basic structure of the budget presentation.

• ITU-wide decision to confirm or amend the shared planning hierarchy proposed by Dalberg (see appendix A)

• Use of planning hierarchy in operational plans

• Prior to drafting of next operational plans

• Adoption of operational plans in February / March 2005

• ITU management

• Sectors

1.2. Introduce a statement of expected results and performance indicators for each Output into the budget, and continue to include statements of expected results and performance indicators in operational plans

• ITU-wide decision to confirm or amend approach to statements of expected results and performance indicators for each Output proposed by Dalberg (see appendix A)

• Use of statements of expected results, performance indicators in operational plans

• Use of statements of expected results, performance indicators in biennial budget

• Prior to drafting of next operational plans

• Adoption of operational plans in February / March 2005

• Adoption of operational plans at Council session 2005

• ITU management

• Sectors

• Finance Department; sectors

1.3. Allocate resources in the budget to each of the Outputs

• Budget for 2006-07 allocating resources to outputs

• Council adapt Financial Regulations to reflect new result-based budgeting (Appendix H)

• Adoption of results-based budget at Council session 2005

• Council session 2004

• ITU prep., Council adopt

• Council; Council Group on Financial Regulations

6



1.4. Strengthen the current processes for monitoring performance by introducing

Results-based financial report table• Design report table showing cost

allocation variance by Output (Appendix C)

• Publish this report for the first timeResults-based annual report• Design report template for discussion

with Council at 2005 session (Appendix A)

• Publish first annual results-based report to Council at 2006 session

New means of reporting on operational performance• ITU-wide decision on types and

frequency of new means of reporting (Appendix A)

• Baseline reports for 2005

• Prior to publishing

• With Quarterly financial report for Q1 2005

• For Council 2005

• For Council 2006

• Before end of 2005

• Before end 2005, integrated with current schedule of staff appraisals

• Finance Department; implementation task force (see section on implementation governance in this appendix)

1.5. Make amendments to the processes that lead to creation of the budget and of operational plans, so that the list of Outputs and the statements of expected results and performance indicators can be made consistent across these documents

• Joint Council-Secretariat decision on timing of Council session and new schedule of planning events (Report and Appendix B)

• Council decision to establish PBAG, define its terms of reference and its membership (Report and Appendix B)

• At Council session 2004

• At Council session 2004

• Finance Department; implementation task force

7



1.6. Implement an off-the-shelf commercial budgeting application which meets the business requirements for creation of a results-based budget, integrates with the cost accounting solution, and which has the capability to model scenarios during the budget formulation phase

• Integrated with completion of Recommendation 4.1.1 (see below)

• By end 2004 • Finance Department and IS Department

8

1.7. Provide training to staff engaged in planning and budgeting, and to select members of Sector advisory groups involved in the articulation of operational plans, in how to make, monitor and review effective plans

• Training on revised planning and budgeting procedures– For ITU staff– For select members of sector

advisory groups

• By end of 2004• By end of 2004

• Implementation task force



2.1. Create new inter-sectoralOutputs

and

2.2. Create three separate Outputs in the area of satellite Network Filings: Advance Publication; Coordination and Notification

• Council endorsement to revise the list of ITU outputs (Appendix D)

• Revised list of ITU outputs• Use of revised list of Outputs in

operational plans in 2005 and results-based budget for 2006-2007

• Council 2004

• Ops. plans and RBB 2005• Ops. plans and RBB 2005

• Council

• GS, Sectors• GS, Sectors

2.3. Introduce time tracking • Detailed design decisions for ITU-wide time tracking procedures (Appendix D)

• Piloting, configuration, testing of IT toolbox integrated with recommendation 4.1.1 (see below)

• Sector- and Department-specific configuration of time tracking methodology and IT toolbox

• Commence time tracking• First results-based financial report

using time tracking data

• 1/10, 2004

• 1/12, 2004

• 1/1, 2005

• 1/1, 2005• 1/5, 2005


9



10

2.4. Introduce Service Delivery Reporting (SDR) based on Service Level Agreements (SLAs) for (1) the Conferences Department (including documentation and translation); (2) Information Services; and (3) most areas in the Common Services Department (including production of publications, sales & marketing, and printing & dispatch)

• Detailed design decisions for ITU-wide Service Level Agreement formats and procedures (Appendix D)

• SDR-Department-specific configuration of service catalogue, std. costs and delivery reporting methodology

• Completion of interim SLAs for 2005 between SDR-Departments and sectors

• Piloting, configuration, testing of IT toolbox integrated with recommendation 4.1.1 (see below)

• Commence Service Delivery Reporting• First formal service delivery reports

issued for sectors• First results-based financial report using

time SDR data• Completion of refined SLAs for 2006-07

between SDR-Departments and sectors

• 1/9, 2004

• 15/10, 2004

• 1/12, 2004

• 1/12, 2004

• 1/1, 2005• 1/2, 2005

• 1/5, 2005

• 1/4, 2005


2.5. Allocate the following costs across all General Secretariat departments and the Sectors prior to their allocation to Outputs: logistics services; the library and archiving; Personnel and Social Protection Department; and senior management

• Council endorsement of revised allocation procedures for these GS cost categories (Appendix D)

• Council 2004 • Council



2.6. Ensure that new IT solutions to support the revised cost accounting procedures are easy to use and are capable of being integrated with existing administrative applications

• Integrated with recommendation 4.1.1 (see below)

• 1/1, 2005 • Implementation task force

11

2.7. Through internal transfer, supplement staff in the functional areas of planning and finance in order to ensure effective implementation of the new user training and systems maintenance requirements resulting from these recommendations

• Complete resource and staffing plan for the functional areas of planning and finance to ensure sufficiency of resources for implementation of recommendations and subsequent operation and maintenance of revised financial management system

• 1/10, 2004 • ITU management

2.8. Also apply the revised cost accounting procedures to TELECOM

• Council endorsement of revised cost accounting procedures and application to TELECOM (Appendix D)

• Implementation of revised cost accounting procedures for TELECOM in line with rest of ITU

• Council 2004

• 1/1, 2005(see milestones for Recommendations 2.1 thru 2.7)

• Council

• ITU management



12

3.1. Strengthen business processes for forecasting and monitoring cost recovery income

• Detailed design for report table template for monitoring cost allocation and cost recovery income (Appendix F, p. 7)

• Detailed design for improved forecasting procedures for cost recovery

• Launch of strengthened monitoring and reporting practices and inclusion in quarterly financial reporting

• Include detailed resource plan and forecasting of cost recovery income in biennial budget for 2006-07

• 1/1, 2005

• 1/1, 2005

• 1/1, 2005



3.2. Review options for increasing the ability to respond to fluctuations in demand for cost recovered services

• Options review and recommendations discussed with Council members

• Council endorsement of revised procedures; and possible review of Financial Regulations and other decisions

• 1/4, 2005


• ITU management (and Fin. Reg.s?)

• Council

3.3. Review options for strengthening financial controls over expenditure against cost recovery income

• Options review and recommendations discussed with Council members

• Council endorsement of revised procedures; and possible review of Financial Regulations and other decisions

• 1/4, 2005


• ITU management (and Fin. Reg.s?)

• Council



4.1.1. Deliver the IT toolbox for Results-Based Budgeting / Cost Accounting

• Product research and evaluation of key software architecture options

• Configuration of IT applications in line with detailed business process requirements

• Piloting and testing of IT toolbox• Roll-out of IT toolbox

• 1/8, 2004

• 1/11, 2004

• 1/12, 2004• 1/1, 2005

• Impl. task force, ITU Contracts Committee


4.1.2. Re-invigorate existing governance, strategy and organisational processes

• Formally implement new IS Department organisation and appoint implementation task force

• Adopt ICT strategy in line with recommendations (Appendix E)

• ICTC and other governance groups meeting on schedule sufficient to sustain implementation progress

• Conduct accelerated reviews of SAP and HR/Access; re-negotiate license agreements

• ASAP

• 1/8, 2004

• 1/8, 2004

• 1/9, 2004

• ITU management

• ICTC

• ICTC

• Implementation task force, ITU Contracts Committee

4.1.3. Develop Service Level Agreements (SLAs) with customers

• SLAs and SDR completed for IS Department in line with implementation plan for recommendation 2.4 (see above) and reflective of requirements on Department for implementation of recommendations 1 and 2

• 1/1, 2005 • IS Department and implementation task force

13



4.2.1. Develop a Project Management methodology

• Adopt revised project management methodology targeted to ITU needs

• Training of staff in PM methodology

• 1/8, 2004 • IS Dept., ICTC

4.2.2. Implement an ITU-wide information management policy and strategy

• Proposed policy for ITU-wide information management policy and strategy. This policy should be targeted to ITU federal environment and standards for confidentiality and security, while setting the stage for full integration of IT systems

• Decision to adopt information management policy and strategy subsequent to ITU-wide dialogue

• 1/9, 2004

• 1/10, 2005

• IS Department and implementation task force

• CoCo, ICTC

4.2.3. Increase the footprint of core administrative systems

• Blue-print for package-enabled re-engineering of administrative business processes, including Pers., procurement, finance and travel. Linkage to recommendation 6 (Appendix F, pp. 14-19)

• Business Warehouse to support IT toolbox for RBB and CA

• Further integration between core administrative systems

• Completed configuration, piloting, training, testing and roll-out of strengthened core systems and business processes

• 1/1, 2005

• 1/4, 2005

• 1/11, 2005

• 1/1, 2006


14



4.2.4. Extend document management system and roll-out e-Collaboration tools

• Training of IS document management system development team

• Completed roll-out of Document management systems

• e-Collaboration tool to support study groups, working parties or projects configured, tested and rolled-out

• Workflow functionality configured• Completed integration of Documentum

and core administrative systems

• 1/9, 2004

• 1/1, 2005

• 1/6, 2005

• 1/9, 2005• 1/1, 2006


4.2.5. Rationalise the applications portfolio in use at ITU

• Review of applications portfolio and supported business processes to provide basis for elimination

• Decision to phase out and eliminate applications

• Full migration to core administrative and information management systems for all business requirements

• 1/8, 2005

• 1/10, 2005

• 1/1, 2006


• ICTC


4.2.6. Design a new IT infrastructure architecture

• Inventory of business requirements regarding IT infrastructure

• Fit / Gap analysis current state and business requirements

• Detailed plan addressing specific areas such as database management systems, telephone system and servers

• 1/9, 2005

• 1/10, 2005

• 1/11, 2005


15



4.2.7. Conduct an outsourcing opportunity review

• Review of the ITU wide IT services portfolio and terms of reference for separate review body

• Assessment to identify potential areas for outsourcing

• Presentation of the assessment to the ICTC

• Execute request for proposal (RFP preparation and launch RFP)

• 1/11, 2005

• 1/12, 2005

• 1/12, 2005

• 1/1, 2006


• ICTC


4.2.8. Re-organise and rationalise IT services

• Aligned business processes and rationalised IT architecture

• Realigned IT services portfolio and IT organisation

• Transformed profile of the IT staff that fits the portfolio of services

• 1/1, 2006

• 1/2, 2006

• 1/3, 2006

• IS department and implementation task force

4.2.9. Improve access to information for members, management and staff

• Portal strategy to enhance staff and Member interaction

• Overview of portal content in coherence with information management policy

• ITU staff Self Service portal with administrative applications and executive information system

• 1/1, 2006

• 1/3, 2006

• 1/6, 2006


16



5.1. Reinforce governance mechanisms for decisions relating to documentation and publications that have a major impact on cost, and restructure the publications portfolio

• Revised terms of reference of IPPC to strengthen governance of publications portfolio (Appendix F, pp. 11-12)

• Decision on thresholds to rationalise publications portfolio in terms of publication, printing, and translation in consultation with ITU membership

• 1/1, 2005

• 1/7, 2005

• IPPC and ITU management

• ITU management and members, Conferences Department

5.2. Conduct specific market testing for select functions in the publications process, including sales & marketing for non-electronic publications and the dispatch function

• Results of market testing (ie. research and evaluation of commercial alternatives) based on cost accounting

• Decision on outsourcing or partnership with external service providers

• 1/10, 2004

• 1/1, 2005

• Common Services / Finance, ITU management

17



6.1. Re-engineer administrative business processes, particularly in the areas of finance, HR, procurement and travel, to leverage fully an integrated electronic processing

• See linkage with Recommendations 4.2.3, 4.2.4 putting in place integrated IT solutions enabling re-engineering

• Decisions on changes to ITU regulations, rules and procedures in order to implement automation and simplification of core administrative business processes (Appendix F, pp. 14-19))


6.2. Simplify and update the control framework currently in place to allow greater decentralisation of authority once the IT improvements are in place

• See linkage with recommendation 4.2.3, 4.3.4 and 4.2.9 enabling automated controls, electronic signature and real-time exception reporting

• Decisions on changes to ITU control framework and delegation of authority (Appendix)


6.3. Reinforce accountability for performance commensurate with greater decentralisation of responsibility

• Plan for enhancing performance measurement accountability

• Roll-out of new performance measurement tools

• 1/7, 2005

• 1/1, 2006

• ITU management, Personnel, Finance

18

Contents

19

Linkages between Recommendations

There are strong linkages between all recommendations

Linkages between our recommendations

• Recommendations 1 and 2. The implementation of results-based budgeting and the revised cost accounting procedures are entirely interdependent. The budget results-based budget will determine the list of outputs to which costs will be tracked in the cost accounting system. In turn, the cost accounting system provides an essential basis for budget estimates for the results-based budget

• Recommendations 3 and 5 can be implemented independently. However, benefits of implementation would increase with joint implementation with rec.s 1 and 2 (improved cost accounting information) as well as with the improvements in business processes and IT systems in rec.s 4.2 and 6

• Recommendations 1, 2, 3, 5 and recommendation 4.1. Rec. 4.1 delivers the IT toolbox for implementation of results-based budgeting and cost accounting laid out in rec.s 1 and 2. Implementation of rec.s 1 and 2 is not possible without this toolbox

• These recommendations and recommendations 4.2 and 6. Implementation of the Revised ICT Strategy (rec. 4.2) and the associated business process improvements (rec. 6) will require significant IT and functional resources. The re-invigoration of the IT function and the improved prioritisation of resources associated with the revised cost accounting procedures and the introduction of SLAs are needed to free up the resources required for implementation of rec.s 4.2 and 6

• Sub-recommendations within 4.1 and within 4.2. Sub-recommendations within rec.s 4.1 and 4.2 should be regarded as packages of initiatives. As described in the following two pages, these recommendations are interdependent and their benefits cannot be captured separately

20

Linkages between sub-recommendations within 4.1

Linkages within recommendation 4.1

• Implementation of rec. 4.1.1 is likely to fail in the current environment without implementation of the improvements in rec.s 4.1.2 and 4.1.3

• Rec. 4.1.2 is prerequisite for 4.1.1. Implementation of the IT toolbox for RBB and CA within 6 months will pose significant challenges for ITU’s IT functions. It will be necessary to put in place a formal structure for the IS Department and re-invigorate IT governance and IT management processes to meet this challenge

• Rec. 4.1.3 is prerequisite for 4.1.1 and 4.2. The current informal approach to service provision makes it very difficult to prioritise resources and projects. SLAs will be needed to achieve the required prioritisation

21

Linkages between sub-recommendations within 4.2are so strong that they should be viewed as one package

Linkages within recommendation 4.2

• Rec. 4.2.1 puts in place project management procedures required to successfully implement the transformation of ITU’s IT architecture

• Rec. 4.2.2 on ITU-wide information management policy and strategy, which is a prerequisite for integration of the core administrative and information management systems in rec.s 4.2.3 and 4.2.4

• Rec. 4.2.3 and 4.2.4 are required together to enhance the use of SAP, HR/Access and Documents and to support the automation and simplification of core business processes

• Rec. 4.2.5 implements the rationalisation of ITU’s applications portfolio made possible by the enlarged footprint of core applications in 4.2.3 and 4.2.4

• Rec. 4.2.6 on IT infrastructure architecture feeds into to rationalisation of IT services and outsourcing opportunities

• Rec. 4.2.7 on outsourcing opportunities feeds into rationalisation of IT services• Rec. 4.2.8 rationalises ITU-wide IT services and reaps the benefits from all

previous recommendations in 4.1 and 4.2• Rec. 4.2.9 leverages the integration of IT applications to provide much-improved

access to information for ITU members, management and staff, which will allow greater use of self-service and enhanced real-time reporting capabilities

One package of recommendations

• These 9 recommendations together constitute the Revised ICT Strategy for ITU (see appendix E)

• All of the recommendations are interdependent with one or more of the other recommendations

• Capturing the full IT-specific and ITU-wide benefits requires integrated implementation of the recommendations

• The timing of implementation also illustrates the linkages between the recommendations (see next page)

22

Detailed implementation timeline also reflect close linkages among IT recommendations

1/7 1/7 1/71/1 1/12004 2005 2006

Initiative 1/10 1/4 1/10 1/4

1. Deliver Results-Based Budgeting and Cost Accounting1. Deliver the IT toolbox for Results-Based Budgeting and

Cost Accounting2. Re-invigorate existing governance, strategy and

organisational processes3. Develop Service Level Agreements (SLA’s) with

customers2. Enhance the efficiency of core administrative process

and of the IT function, while improving member services1. Implement a Project Management methodology2. Implement an ITU-wide information management

policy and strategy3. Increase the footprint of core administrative systems4. Extend document management system and roll-out e-

Collaboration tools5. Rationalise the portfolio of applications in use at ITU6. Design a new IT infrastructure architecture7. Conduct an outsourcing opportunity review8. Re-organise and rationalise IT services9. Improve access to information for members,

management and staff23

Contents

24

Costs and Benefits

Strong recommendation to implement Option 2

Costs and benefits

• The cost benefits analysis lends strong support for an implementation of all recommendations within the outlined 2-year timeframe

• In our report, we present three options with a strong preference for option 2:–Option 1: Implement results-based budgeting and the revised costs accounting

methodology (rec.s 1, 2, 3, 4.1)–Option 2: Implement Option 1 plus an overdue move away from manual administrative

business processes and a transformation of ITU’s IT architecture (rec.s 4.2 and 6). ITU resources would take lead in implementation

–Option 3: Same as Option 2 but led by external consultants and completed within a timeframe that is at least six months shorter. This option requires a much higher investment and may fail to put in place the organisational capacity required in the longer term

• Implementation is estimated to require an investment of CHF 4.8m in external expertise, software and hardware, and training

• This investment will be off-set by significant benefits. The predicted potential financial benefit in Option 2 of up to CHF 4m per year would require that a realignment and redeployment of staff resources would be possible in line with ITU Staff regulations. Overall productivity gains have not been quantified, but are predicted to be substantial based on the experience in UN agencies and other organisations

25

Costs and benefits summary (1/2)One-off investment additional to current budget estimatesRecommendation Key benefits

1 (Results-based budgeting)

• A clarified budget document which shows resource allocations by Output, links budget to operational plans and allows assessment of performance against expected results and performance indicators

• A more direct, transparent and accurate link between costs and outputs

• Enhanced forecasting and planning of service delivery• Improved prioritisation of resources

2 (Cost accounting)

• Effective and user-friendly IT toolbox for development and presentation of results-based budget and for tracking and analysis of ITU costs

4.1 (ITU’s system of budgets)

• CHF 600,000 to deploy required IT systems and applications (see following pages for detailed break-down)

• Reduction of risks associated with fluctuations in cost recovery income

f • None3 (ITU’s system obudgets)

5 (Publications and Documentation)

• None• Improved prioritisation of publication and documentation activities

• Increased organisational efficiency

26

Costs and benefits summary (2/2)One-off investment additional to current budget estimatesRecommendation Key benefits

27

4.2 (Enhance the efficiency of core adm. processes and of the IT function while improving member services)

and

6 (Re-invigorate business process controls)

• Improved leverage of core admin. solutions and stripping away of large numbers of applications that currently waste staff and financial resources

• Fundamental long-term improvement in the way IT is organised and governed

• An overall annual cost saving of up to CHF 4m (equivalent to ~20% of IT spend)

• Automation and re-engineering of core admin. processes freeing up resources across ITU currently used for manual and inefficient processing

• Greater delegation and an organisational culture more encouraging of initiative

CHF 4.2m to implement efficiency-enhancing initiatives (see following pages for detailed break-down)

Detailed summary of costs and benefits for business process improvements (rec. 6) and Transformation of IT architecture (4.2)

Recommendation Key benefits

One-off investment additional to current budget estimates, CHF

4.2.1 (Proj. mgmt. methodology)

• Improved efficiency and effectiveness in execution of IT development projects 42,500

• Enhanced capture, management, storage and retrieval of information across ITU• Remove barrier to integration of admin. systems

4.2.2 (Info. mgmt. policy)

22,500

• Upgrade core admin. systems, SAP and HR/Access, and to leverage their potential for supporting ITU business processes

• Reduce workload associated with manual processing of admin. tasks, including manual re-entry of data, manual budget checking and multiple signature approvals

• Integrate information repositories in business warehouse and enhance real-time reporting capabilities

• Enhance internal controls, thereby facilitating increased delegation of authority

4.2.3 (Footprint of core admin. systems)

2,891,600

• Leverage potential of Documentum to enhance electronic handling of ITU documents

• Increase e-collaboration internally and among members

4.2.4 (Extend doc. mgmt. system)

143,125

• Prepare ITU for longer-term improvements in the resilience, reliability, security and service of IT architecture

4.2.6 (Design new IT infrastructure architecture)

27,000

• Reduce maint. and development burden by eliminating overlapping applications• Complete move to core adm. and info. mgmt. applications

4.2.5 (Rationalise applications portfolio)

27,000

• Increase organisational efficiency through out-sourcing, where supported by a clear business case

4.2.7 (Outsourcing opportunity review)

36,000

• Align IT organisation with post-transformation requirements, reduce duplication and harvest benefits

4.2.8 (Re-org. and rationalise IT services)

18,000

• Increase use of self-service and knowledge-sharing for staff and members• Leverage integrated info. systems for real-time reporting and monitoring in

executive management infomation system

4.2.9 (Improve access to information for all users)

990,000

28

Summary of internal and external resources required for implementation

Resources required for implementation

• The following pages contain detailed estimates of the resources required for implementation of our recommendations. The estimates reflect Option 2 (Implementation of all recommendations with internal ITU lead). The estimates cover all aspects of implementation, including technical expertise, software and hardware, and training

• The internal workload required for implementation will amount to an average of app. 12 staff members. Significant contributions will be made by the Finance Department Budget Division and the IS Department groups on administrative systems and document management systems. Sectors and other GS Departments will also be involved in the implementation

• A total investment of CHF 4.8m for external costs of implemenation over a two-years period is foreseen. This covers all aspects of implementation with the following break-down:–External expertise: 56%– IT Hardware and software: 33%–Training of ITU staff: 11%

• Cost estimates are made with a high level of detail, a clear linkage to the implementation plan, use of very competitive rates and approaches, and low provision for contingency

• In addition to these resources, successful implementation of the recommendations will require close attention, guidance and oversight from ITU management, Council and other ITU stakeholders

29

Notes on approach to estimation of resources required for implementation

Approach to estimation

• Separate cost estimates for each sub-recommendation based on implementation plan• Workload for internal resources and external experts have been estimated on a day-basis• External expertise (56% of external cost estimate) includes both technical IT expertise,

functional expertise, documentation support and change management support

High level of detail and clear linkage to implementation plan

Use of very competitive rates and approaches

• Daily rates for external experts assumed to match the most competitive options available in Geneva. These rates are in line with bids given for the Consultancy Project

• Software and hardware costs (33% of external cost estimate) have been estimated based on previous ITU procurement and existing license agreements with core application providers

• Training costs (11% of external cost estimate) are based on current rates from core application providers and extensive use of train-the-trainer approaches

• There is no provision for contingency included in the CHF 4.8m estimate• Rec. 7 calls for an investment ’in the order of’ CHF 5m. The difference of CHF 200K between

estimate and recommendation is less than 5% of total external costs of implementation, which constitutes a low provision for implementation contingencies

• This low provision reflects confidence that the implementation can follow a critical path based on the detailed planning and consideration of the recommendations

Low provision for implementation contingency

• Detailed estimates are contained in unpublished Excel model• Costs estimates are regarded as sensitive information that could put ITU at disadvantage in

contract negotiations with vendors during procurement process• Detailed information will be available to Council members during the 2004 Council and

Dalberg will be available to answer questions about estimates

Detailed estimates not in public domain

30

Summary of external costs of implementation over a two-year periodCHF

• Cost of implementing options provided in final report to Council:–Option 1: first column only–Option 2: both columns

• The amounts are composed of more detailed estimates per recommendation

Rec.s

Expense category

Deliver IT Toolbox Results-Based Budgeting and Cost Accounting

Rec.s 1, 2, 3, 4.1, 5

Enhance the efficiency of core administrative processes and of the IT function, while improving member services

Recs. 6, 4.2Software & Hardware 60’000 1’531’125

External expertise 459’000 2’241’000

Training 80’500 425’600

Total 599’500 4’197’725

Source: Dalberg Analysis

31

Detailed break-down of external cost estimates, recommendation-by-recommendation CHF

32

• External costs of implementation of recommendations on IT (4.1.1 thru 4.2.9) cover full implementation of related recommendations (see column ‘including’)

• Linkages between recommen-dations in groups 4.1 and 4.2 are described in previous section

• In our view, the two groups should be regarded as packages of sub-initiatives that together will yield the outlined benefits

IT rec.s Software & Hardware

External expertise

Training Total

Rec. 4.1.1 50’000 373’500 80’500 504’000

Rec. 4.1.2 0 49’500 0 49’500

Rec. 4.1.3 10’000 36’000 0 46’000

Subtotal (CHF) 60’000 459’000 80’500 599’500

Rec. 4.2.1 20’000 22’500 0 42’500

Rec. 4.2.2 0 22’500 0 22’500

Rec. 4.2.3 888’000 1’677’000 326’600 2’891’600

Rec. 4.2.4 68’125 60’000 15’000 143’125

Rec. 4.2.5 0 27’000 0 27’000

Rec. 4.2.6 0 27’000 0 27’000

Rec. 4.2.7 0 36’000 0 36’000

Rec. 4.2.8 0 18’000 0 18’000

Rec. 4.2.9 555’000 351’000 84’000 990’000

Subtotal (CHF) 1’530’125 2’241’000 425’600 4’197’725

Total (CHF) 1’591’125 2’700’000 506’100 4’797’225

Including

Rec.s1, 2, 3, 4.1, 5

Rec.s 4.2, 6


Internal resources required for implementation over next 2 yearsCumulative workload estimate, FTE

ESTIMATE

• Peaks in implementation effort falls in short-term effort to re-invigorate IT function and around training and roll-out of new systems and procedures

• A large proportion of internal workload will be handled by the adm. systems and doc. mgmt. groups in IS Department

• Other IS Dept. resources will have significant involvement in transformation of IT architecture

• Finance Department will play key role in implementation of revised financial management system

• Sectors and other GS Departments will also play critical role, especially in roll-out of new systems and processes

• Balance of GS and sectors contributions can be adjusted by ITU management as required

0.02.04.06.08.0

10.012.014.016.018.020.0

Aggregate workload (FTE)

1 3 5 7 9 11 13 15 17 19 21 23

Time from 1/7/2004 (months)

Internal resources, full time equivalents

SectorsISGS


33

Contents

34

Implementation governance

Application of best practices for implementation governance

Key relevant best practices

• Design effective implementation oversight mechanisms to match the tight deadlines and the need to work quickly. These include:– Involvement of all key stakeholders–Clear delineation of mandates and responsibility–Ability to resolve emerging implementation issues quickly–Clear location of responsibility for specific implementation components with

individual managers

• Not regard implementation as merely, or even mostly, an IT issue. Shared ownership in implementation between business process owners (functions such as Finance), IT experts (such as the IS Department) and users (such as sectors and other GS Departments). Decisions on changes to business processes must follow decisions on IT improvements

• Maintain internal lead in implementation. External implementation partners should be managed effectively to contain costs and maintain quality of delivered solutions. Structured learning should be planned to ensure that internal capacity is in place to operate new processes and systems independently once external partners leave

35

Key options for working arrangements and oversight procedures for implementation of recommendations

Guiding principles Key options

Oversight committee

• Creation of Oversight Committee with ITU, Council and expert representation

• Alternatively, continuation of CPSC and Group of Specialists joint arrangement

• Inclusion of all interested parties, including GoS representation, so that the project leadership does not end up effectively reporting to two bodies

• Simple, non-overlapping arrangements• Practical and cost-efficient

Implementation task force

• Involvement of oversight Committee in selecting the internal and any external members of project implementation task force to ensure ownership of the process by all ITU-related parties

• Cross-functional ITU involvement combining administrative functions, IT and users

• Sector involvement

• Continuation of Consultancy Project Task Force (CPTF) or similar joint task force for implementation

• Creation of project Steering Committees and project teams for each project component

• ITU management responsible for implementation of recommendations

Senior management guidance

• PSC or CoCo• ICT Committee role in IT-related aspects

36

Contents

37

Risks and change management

Risks and change management for implementation phase (1/2)

Risks Steps to mitigate

Failure to endorse and adequately fund Recommendations

• Secure Council approval of Recommendations and investment plan• Obtain top management commitment to Recommendations• Present and adapt ICT Strategy to secure endorsement by ICTC

Internal reluctance to support recommendations

• Devise clear communication plan to lay out and discuss changes, costs and benefits with staff, users and management

• Regularly report to staff and management on implementation progress• Empower Oversight Committee to see to a full implementation of Recommendations

Scope and budget creep • Define and approve detailed project plans for each initiative• Review progress on a monthly basis, including discussions of shifting priorities or failure to

free up resources from other activities• Define and adhere to detailed budgets for all projects

Failure to meet milestones • Put in place immediately first-step organisational, governance and process improvements• Take strict approach to delays in major project milestones

Unclear ownership of projects • Establish Project Steering Committees with basic representation from functional departments, IS department and users

• Establish clear project ownership and ultimate responsibility with one ‘project owner’ and operational responsibility with one ‘project manager’; project should not be started without clear ownership

38

Risks and change management for implementation phase (2/2)

Risks Steps to mitigate

Exposure to technical bottlenecks

• Push to complete upgrade of SAP to version 4.7 before start of implementation of new budgeting and cost accounting procedures

• Ensure that IBM continues support HR/Access, at a minimum for next two years

Delay in contracting with external experts

• Review options to fast-track procurement process for external experts, e.g. retain individual experts on short-term contracts, leverage terms and conditions generally available to UN agencies

Exposure to other external bottlenecks

• Devise clear training plan and budget for SAP team immediately to secure slots in training cycle

Dependence on ITU rules, regulations, and other procedures

• Map decisions to be taken by ITU management and other decision-makers to facilitate implementation

• Clearly demonstrate value of core process re-engineering decisions to top management so that these decisions are made and executed

• Empower ICTC and other IT-related governance bodies to drive through implementation of ICTstrategy

Failure to secure acceptable terms and conditions from key vendors

• Re-negotiate SAP license as soon as possible to reflect new user profile, based on terms and conditions offered to other UN agencies; otherwise explore other ERP options

• Fast-track selection process for any other application(s) to support budgeting, cost accounting and reporting based on requirements defined in consultancy project and other studies

Limitations in opportunities to flexibly deploy resources in support of IT functions

• Work within existing staff regulations and ITU’s wider human resource situation to align ITU resources with requirements to implement ICT strategy

• Work with other UN agencies to identify opportunities for accessing and re-deploying staff resources

39

Direct and effective communication will be critical throughout implementationProposed communication plan

ObjectiveEvents TimingMedia

Council presentation • Introduce recommendations and provide additional information, as required

Oral presentation with back-up materials

9 June 2004

ITU information sessions for ITU managers

• Introduce recommendations and Council decisions

During Council 2004Oral presentation with back-up materials

40

ITU-wide staff information sessions

• Introduce recommendations and Council decision

Subsequent to Council decision

Oral info. sessions with back-up materials

Regular internal updates and information sessions

• Update staff on progress and address concerns throughout implementation

Monthly during first year; quarterly thereafter

• Written; in e.g. ITU News• Oral info. sessions

Regular updates to Council

• Keep Council appraised of progress made, barriers and results

At least for Council sessions 2005 and 2006

Written report, posssibly through existing quarterly reports