Moving from Moving from money well accounted for money well accounted for

to money well spentto money well spent

UK Information Technology SummitUK Information Technology Summit

May 2005May 2005Helen McDonald

A/Chief Information OfficerTreasury Board Secretariat

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The ContextThe Context

• Well on our way to achieving the Government On-Line objectives established for end 2005

• But services not re-engineered, external focus, opportunities lost by not acting as an enterprise

• Budget 2005 committed to changing the way government works•Improved service quality and efficiency

•Reinforced public service capacity

•Strengthened governance and accountability

•Sound stewardship of public resources

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Gross IT SpendingGross IT Spending

4,2784,339

4,728 4,750

4,951

$3 M

$4 M

$5 M

99/00 00/01 01/02 02/03 03/04

•Government of Canada spent $5B on IT in 2003-04

•Adjusted for inflation, spending has been close to flat, negative if HR removed

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GoC PerformanceGoC Performance

• Government projects large, risks commensurate

• Project management and approval oversight addressed Enhanced Management Framework provides

process and tools Treasury Board approval and tracking of larger

initiatives

• Efforts today necessary but not sufficient Project management rigour does not ensure

horizontal alignment or outcome success

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Project Management TodayProject Management Today

• Business case methodologies set out the problem, options, costs and timeframe

• Once an option is selected, project is monitored based on budget, schedule, resource utilization…

• The implicit assumption: If the project is on time, on cost, with full functionality then the benefits will be realized

• The assumption is false: Good project management is necessary, but not sufficient to obtain the desired outcomes. Outcomes must be proactively managed

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Realizing OutcomesRealizing Outcomes

ValueManagement

ProjectManagement

•Outcome(s) focus•Program management•Opportunity-seeking•Value optimisation

•Product delivery•Project management•Budget and schedule•Cost optimisation

Outcome management – practices and processes that focus on the delivery of organizational goals and priority outcomes

Three dimensions:

•Strategic alignment

•Performance measures

•Risk

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The PayoffThe Payoff

• Investment plans, assets, projects and transformation programs that: Are aligned with business strategies Deliver clear and measurable outcomes Have high likelihood of delivering benefits and

value for the enterprise (therefore, for citizens and businesses)

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IT Services ReviewIT Services Review

•92-95% of IT expenditures within each department or agency with minimal GoC-wide optimization

•Significant opportunities to move to common and to “Act as One”•Distributed computing (managing desktop)

•Data centre services (equipment acquisition and operations)

•Web hosting services

•Private / Public sector experience: significant efficiency and effectiveness gains, with investment

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Common IT ServicesCommon IT Services

• IT Shared Services Organization Preliminary planning in process

• Distributed Computing Services Common Email Service – Spring 2006 Common OA Suite – Fall 2006 Common Desktop Service – Spring 2007

• Data Centre Services Preliminary planning (Mainframes) – Summer

2005 Initial Consolidated Services– Spring 2007

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Managing as an EnterpriseManaging as an Enterprise

•Enterprise governance

•Common definition and view of business lines

•Common view of the client we serve

•Common business processes across all lines of business and shared enterprise information

•Common identification of employees

•Common measurements against corporate goals

•A single infrastructure to support services

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The Payoff The Payoff

• Integrated services across different departments, agencies and other levels of government

• Elimination of duplication, streamlined requirements and processes

• Consistent services delivered to citizens across all channels

• Government-wide alignment and stewardship of strategic investments

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Enterprise ApproachEnterprise Approach

Portfolio

Program

Plan Build Operate

Project

Enterprise

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Holistic ApproachHolistic Approach

• Renewed enterprise policy suite• Common services policy, TB submission guidelines

• Modernized management practices• Common language: Management, Resources and Results Structure

• Enterprise business and services architectures

• Outcome management

• Portfolio (horizontal) management

• Integrated measurement framework

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Holistic Approach …Holistic Approach …

• Enterprise governance •DM service transformation committee

• Common / shared services

• Strategic investment fund

• Increased investment in people and communities

• Improved decision support•Ongoing review of government-wide spending

• Regular assessments of department management

• Increased capacity for strategy development (technology, information, service)

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