State of Washington Roadmap for Financial and Administrative

Policies, Processes and Systems

IPMA Forum 2005Roadmap Program

May 24th, 2005

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Agenda

Enterprise Architecture 15 min

Roadmap background 15 min

Applying EA to the Roadmap 25 min

Roadmap next steps 15 min

Q & A 15 min

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What is Enterprise Architecture?

• Analogous to Building Architecture

• Ensures the building matches the needs of the occupants - “One size doesn’t fit all”

• Provides multiple interrelated views to maintain context - e.g. plumbing, electrical, structural

• Uses engineering principles to improve the likelihood of successful completion

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ISB Enterprise Architecture Committee

Dennis Jones, OFM (co-chair)

Thomas Bynum, ESD

Sue Fleener, WSP

Cathy Munson, LSC

Christy Ridout, DSHS (co-chair)

Julian Soh, DOR

Tom Miller, DOP

Laura Parma DIS

Greg Brant, DIS (non-voting)

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Tier OneBusiness processes, data, or technologies that are common

for the state

Tier ThreeBusiness processes, data, or technologies that are common

only at the sub-agency level

Tier TwoBusiness processes, data, or technologies that are common

for an agency

State of Washington Commonality TiersS

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Inter-Agency Standards

Intra-Agency Standards

Community of InterestStandards

Community of InterestStandards

Community of InterestStandards

Sub-Agency/WorkgroupStandards

State of Washington Commonality Tiers

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WA Tier One Enterprise Architecture Framework

Overarching Architecture Principles

Information Policies & Standards Business Policies

& Standards

Technology Policies & Standards

Information (Data) Business Technology

Information Models Business Process

Models

Technology Directions

Inf. Subject Areas Business Domains Technology Domains

Map

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Map

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Common Datasets

Environmental Trends & Business Drivers

Solution Architecture – Services, Patterns, Applications

Technology Vision & Strategies

Business Vision & Strategies

Information Vision & Strategies

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The State’s Enterprise Architecture (EA) Program

• A framework for decision-making

• Principles driven

• Focused at Tier One

• Roadmap identified as EA early adopter

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Roadmap Background

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Current factors influencing Washington State government

• Significant budget shortfall

• Priorities of Government

• Personnel System Reform Act of 2002

– Collective bargaining

– Civil service reform

– Competitive contracting

• Government Management, Accountability and Performance

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The time is right

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About the Roadmap

The Roadmap project draws together agencies and central service providers to create a comprehensive plan for the transformation of Washington State financial and administrative policies, processes and information systems to solve today’s common business problems with enterprise tools and best practices.

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Roadmap Business Goals

Better information for better results

Improved management systems

Streamlined business processes

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Scope

• Capital asset accounting

• Asset lifecycle management

• Strategic plan & budget development

• Strategic plan & budget approval

• Strategic plan & budget implementation

• Performance & budget monitoring

• Customer information management

• Accounts receivable

• Cashiering management

• Revenue distribution

• Refund/credit management

• Funds management

• Define cost objectives

• Develop cost allocation plan

• Allocate costs

• Grant accounting

• Grant management

• Vendor information management

• Manage bids

• Manage procurement

• Contract management

• Inventory management

• Payables accounting

• Encumbrance management

• Manage chart of accounts

• GL accounting

• Account reconciliation

• Funds administration

• Financial reporting

Procure ToPay

Procure ToPay

Reporting/G/L

Reporting/G/L

RevenueCycle

RevenueCycle

Perf.Mgmt

Budget Cycle

Perf.Mgmt

Budget Cycle

Capital AssetMgmt

Capital AssetMgmt

CostAccounting

Cycle

Decisions support Project management Risk managementDecision Support Risk ManagementProjects Management

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Roadmap challengeFragmented governance & responsibility

Value Proposition: Integrate core end-to-end business cycles

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Roadmap challengeInefficient business processes

• Typical financial benchmarks measure payments per A/P staffer

• Data from 10 state agencies suggest that productivity lags benchmarks

• Core payables processing was found to be the most labor intensive activity

Purchase Order Payments per Accounts Payable Staff

0 500 1,000 1,500

State of WA

Governmentsector

All-industry

2004 Financial Baseline Assessment

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Common business problems & opportunities

Procure-to-pay cycleA1: Optimize purchasing power (strategic sourcing)A2: Put cash in bank, not on shelf (consumable inventory)A3: Streamline procure-to-pay

Reporting/General ledgerB1: Organize data to support all perspectives (chart of accounts)B2: Improve access to information (reporting tools) 

Cost accounting cycleC1: Enable data driven decisions (cost accounting)C2: Protect federal & local funding

Invoice-to-cash cycle D1: Make it easy for customers to payD2: Increase investment revenues D3: Streamline invoice-to-cash

Budgeting cycleE1: Streamline and integrate the budget cycleE2: Empower managers with tools to aid decision-making (measuring performance results)E3: Provide flexibility for innovative budgeting

Capital asset management cycleF1: Maximize return on capital assets F2: Improve accountability for assets

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Agency Prioritization Survey ResultsForced ranking - All agencies

Priority Order

Common Business Problem Statement

1 Improve access to information

2 Streamline budget

3 Organize data to support all perspectives4 Enable data driven decisions

5 Streamline procure-to-pay

6 Empower managers with decision tools7 Streamline invoice-to-cash

8 Make it easy for customers to pay

9 Provide flexibility for innovative budgeting

10 Optimize purchasing power

11 Protect federal & local funding12 Improve accountability for assets

13 Put cash in bank, not on shelf

14 Maximize return on capital assets

15 Increase investment revenues

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• Over 50 central systems

• 220 known agency “shadow” systems

• Nearly 20,000 known desktop tools (spreadsheets, databases, etc.)

Agency Prioritization survey results

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Business Case – Value Themes

• Better information, better results

• More economical government

• Better customer and business relationships

• Optimized return on investment

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Applying Enterprise Architecture

to the Roadmap

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Enterprise Architecture Approach

A framework for decision making using:

• Principles

• Models

• Policies

• Standards

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Architecture Principles

• Applied ISB adopted architecture principles:

– Commonality - Should be common where there is a clear business case; once designated as common, justification is required to deviate

– Business alignment - Should align projects and investments based on Priorities of Government (POG)

– Natural boundaries - Should be designed around natural boundaries

• Other important principles– Do no harm to HRMS

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Models - Functional Decomposition

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Lessons Learned

Additional principles are derived from lessonslearned in other states and HRMS

• Ensure strong sponsorship and governance

• Focus on business outcomes – not systems

• Agree on common policies, processes, and data before picking system solutions

• Transform incrementally

• Agree on strategy for integrating new systems into the existing environment

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Developed the Roadmap

Defined initial Roadmap business initiatives, projects and timeline based on:

Value & priority

Principles

Scope models

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Roadmap Next Steps

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Next Steps

• Confirm executive sponsorship

• Establish Roadmap governance

• Begin the Foundation Initiatives:

– Business modeling

– Integration architecture model

– Enterprise service delivery model

– Feasibility study

– Acquisition

– Budget request / decision package

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Next Steps Business Process Modeling

ISB Enterprise Architecture Committee’s principles:

Key Decisions:

Designate Roadmap Business Processes as Tier One – Common Statewide?

How do we align our business processes?

What best business practices do we want to adopt?

• Commonality • Business Ownership

•Natural boundaries • Business Continuity

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Next StepsBusiness Process Modeling

• Identify enterprise data standards

Key Decision:

How do we maintain agency flexibility while leveraging statewide data to improve operations?

• Evaluate functionality of solution alternatives against core business processes using models

Key Decision:

What software products best implement our desired best practices?

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Next StepsIntegration Strategy

Defining an Integration Architecture

• Connect the legacy systems to the new environment as we transition

• Assist agencies to connect their core system with new systems

• Data standards, exchange formats, services and components, multiple models

Key Decisions:

What are the critical success factors in creating a durable enterprise wide integration architecture?

How do we insulate systems from changes in interface requirements as we transition?

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Q & A

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Sadie Rodriguez-Hawkins, 360-664-7650, Sadie.Hawkins@ofm.wa.gov

Dennis Jones, 360-664-7695, Dennis.Jones@ofm.wa.gov

Kathy Rosmond, 360-664-7771, Kathy.Rosmond@ofm.wa.gov

Allen Schmidt, 360-664-7732, Allen.Schmidt@ofm.wa.gov

Visit the Roadmap website at:

http://www.ofm.wa.gov/roadmap/default.htm

Roadmap contacts