CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

John Kost

Group Vice President

Delivering Successful Projects

in Government

1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Heard any good horror stories lately?

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Honesty

"The single biggest failure of the project was failure around managing the program and governance of it," she said.

"There was no real clarity of governance. There was one part of the government that was responsible for whole of government IT in a shared service provider model, and then we had the line agency Queensland Health," the former premier said.

"Between those two agencies there was not a single point of accountability. So everybody was in charge, which ultimately meant nobody was."

Anna Bligh

Former Premier of Queensland

May 18, 2015

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CONSUMERIZATION

The Nexus of Forces Is Enabling Transformation in Government

Big Data, New Insights

Seamless Socialization

Empowered Citizens and

Employees

IT as a Utility

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The Digital Public Sector Challenge

In a Digital Government World…. Data siloes must be overcome and data shared internally and externally Processes must be standardized across siloes IT infrastructure is not a limiting factor Governance models and Leadership must enable this

Process 1

Silo 1 Silo 2 Silo 3 Silo 4 Silo 5 Silo n

Process 2

Process 3

Process 4

Process 5

Process n

DATA

DATA

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DATA

DATA

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DATA

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The Most Critical IT Role in the Public Sector: The Chief Executive

The Chief Executive’s aptitude towards conflict resolution related to IT sets the tone for IT management and governance throughout the enterprise.

Throughout the world, most public sector CE’s are missing the plot

Poorly trained with insufficient understanding (or even fear) of IT management

– “I’m too busy managing this department. IT is not important to me.”

Avoidance of conflict resolution

– “It’s IT, you guys work it out (so I don’t have to understand it).”

Disengaged from change management

– “It’s an IT project, I don’t want to be involved.”

Poor understanding as to what to expect from CIOs

– “He does a great job of keeping our computers running.”

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Traditional View of IT by Government Leaders

Type 1 – Ongoing Operations

Expectations:

A mystical black box of technical issues they don’t understand or care about.

It costs too much

Type 2 – New Projects

Expectations:

They will be late

They will be over budget

They will fail to deliver promised results

The failure will end up in the newspaper

The results undermine IT leadership credibility

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Governance/Project Assessment

CIO Effectiveness and Project Success are both dependent on strong governance. Five factors can help predict success.

D

C

B

AWhat is the level of personal engagement of the CEOs of the

department(s) affected by the project?

Is the project perceived to be an “IT Project”?

Is it clear who the decision makers are and is the decision making path (governance) for policy decisions clear and timely?

Is it clear who will resolve conflicts whenever inevitable policy or contractual issues arise and the process for escalating conflicts?

EAre the intended outcomes clear and are those outcomes focused on

refined service delivery processes rather than IT deployment?

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Personal Engagement in Projects

Typical

Obligatory sign-off on business case

Perfunctory quarterly steering committee meetings

Change management delegated to project manager

Lack of willingness to change direction (or cancel) if milestones show project off track

Best Practice

Detailed review of intended business benefits and project plan

Project manager reports directly to CEO (or COO)

Desired state of business processes defined before any IT is considered

Constant and direct interaction with direct reports on execution of change management

Direct reports held accountable for change management within their respective programs

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Governance: Cannot be IT-Driven –Business Leadership Required

IT Governance Strategy

IT Governance

• Goals

• Domains

• Decision Rights

• Principles and Policies

Supply

Governance

(How Should IT Do What It Does?)

Demand

Governance

(What Should IT Work On?)

•Who speaks for each stakeholder?

•Who decides what the highest program /IT priorities are?

•Who decides business process standards?

•Does the organization have the capacity for innovation and change?

•How are needs being communicated from stakeholders to IT?

•Who pays for new capacity?

Business Management Primary Responsibility

•Who decides what IT services to offer?

•Who decides IT service levels?

•Who decides what the highest IT priorities are?

•How are standardized business processes determined?

•How and when is all this communicated to users?

•What happens when there is insufficient capacity to meet approved demand?

IT Management Primary Responsibility

Who? Business/Program Leaders!

CIOs cannot be the decision maker on these issues.

Process? The same one orgs use for non-IT decisions!

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Governance Frameworks

There are an almost infinite number of variations on governance frameworks.

The Good News:

Any Governance Framework Can Succeed

The Bad News:

Any Governance Framework Can Fail

The key to success is:

Having the right people and

Having the right engagement.

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The Best Project Governance is Simple

Business Decision Makers

Project Manager

If it’s much more complicated than this, then you probably have the wrong people

in the governance process.

Chief Executive/SRO

Technical Decision MakersBusiness Process Leaders

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Model Project Governance (large project within single program)

Program Director

Project Champion

Program Manager

FinanceField

ServicesPolicy IT

Governance Council

•Program Director should be highly engaged in decision making and execution

•Program Manager reports to Program Director

•All affected bureaus within the program are represented and participating in governance

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Model Project Governance (large project across multiple programs)

Project Champion

Program Manager

Governance Council

Program Director

Program Director

Program Director

Program Director

Department Director

Program Manager

•Department Director (CEO) should be highly engaged in decision making and execution

•Program Manager reports to Department Director (CEO)

•All affected programs within the department are represented and participating in governance

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Model Project Governance (large project across multiple departments)

Program Manager

Governance Council

Department Director

Department Director

Department Director

Department Director

?

Program Manager

•Department Directors (CEOs) should be highly engaged in decision making and execution

•Program Manager reports to Governance Council

•All affected departments are represented and participating in governance

•Someone above the department director level must be prepared to step in to resolve stalemates in governance decisions

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Making Governance Effective

WHO

Do they have the authority?

Do they have the aptitude?

Are they decisive?

Do they have the necessary information?

Do they make the time?

PROCESS

Do decisions get to the right person(s)?

Processes can include;

Chain of command discussions,

Project management escalation,

Budgeting,

Human Resources,

Procurement,

Strategic planning,

Risk management,

Enterprise Architecture planning

Business process modernization.

Who decides and by what process.

DECISIONS

• Binding

• Enforceable

• Accountable

• Responsible for execution

• Business process-focused

• Communication

• Conflict resolution

• NOT to be confused with advising.

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Project Engagement for the CEO

Before a project starts:

What are the overall objectives of the project?

Investment Logic Mapping

What is the desired end state when the project is done?

Business processes

Customer impact

What are the metrics for success?

Do all business unit heads agree?

Did/Will the procurement lead to the desired outcome?

Players

CEO

Project manager*

All business unit heads

CFO

CIO

Head of Procurement

Head of HR

* Honesty & Trust

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Project Engagement for the CEO

Weekly during the project:

What did we accomplish last week?

Were there any deviations from the intended end state? Why?

– Are all business units in agreement on the deviations? Impact on the benefits stream?

Are there any policy issues that require a decision?

– Who is involved in the decision? HR/project resourcing issues?

– Where do the issues stand? What is the nature of the conflict?

– When will the decision be made? Do I need to intervene?

What is being done to plan for execution/change management?

What is happening in the week ahead?

Communications/messaging?

Are any changes in the contract(s) with vendors required? Why?

Players

CEO

Project manager*

All business unit heads

CFO

CIO

Head of Procurement

Head of HR

* Honesty & Trust

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Creating "Intelligent Consumers"

Getting the right stakeholders in engaged in demand governance is half the battle.

The second half of the battle is for them to know what they want/need.

Create "intelligent consumers" by introducing stakeholders to ways technology can help them solve business problems or transform how we do business.

Innovation opportunities

New technologies

Best practices occurring in government or other industries

Chief Executives cannot delegate strategic leadership.

CEs must set the direction for your enterprise.

IT cannot (nor should it) execute what the business is not ready for.

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Vendors & Procurement

Many transformation projects are set up to fail through the procurement process and resulting contracts (for lots of reasons, including project governance).

Tender documents should describe project governance framework.

Vendors should propose a governance framework that will work, whether it is asked for or not.

Vendor and end-user governance frameworks should be aligned during contract negotiation.

Use the resulting governance framework to resolve conflicts and uncertainty FAST!

“Firm, Fixed-Price Contracts”

Two Great Works of Fiction:

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The key value is in enabling business

Automating processes

Integrating processes

Transforming processes

But, IT cannot do this itself.

Business must take a leadership role.

Business consumers must understand what they are getting themselves into.

Once into it, business leaders must engage in change management and execution.

Software cannot resolve business rule conflicts.

Turf/politics

Process

Technology

Easy

Hard Hierarchy of challenges

CIOs rarely have the authority to fix this problem.

• Getting agencies to work together

• Cohesive enterprise leadership

driven by cooperation, not "turf"

• Consensus of direction

• Procurement, HR, budgeting

• Rigid command and control

• Hierarchical rather than open

• Standards

• Data modeling and integration

• Modernization

• Privacy and security

Unique Public-Sector Challenges: Why Getting IT Governance Right Is Critical

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Recommendations for CIOs (1)

1. Do a candid assessment of your governance structure and, specifically, of the executive business sponsors to sense whether they are ideally suited for the leadership required.

Do they grasp the kinds of issues and decisions they will be required to be engaged in?

From: “Where the Buck Really Stops for Government IT Project Failure” – John Kost (G00263001)

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Recommendations for CIOs (2)

2. Have heart-to-heart talks with the CE (as many as are needed during the course of the project):

Note that this is not an IT project, and the business has to take ownership of policy and change management decisions.

Find out directly the kinds of decisions that the CE is uncomfortable making and develop a work-around plan so those decisions do get made.

Point out that there must be very strong project management capabilities with direct access to the CE for quick decision making.

Ensure there is a clear expectation around communication:

– What issues does the CE expect to be involved in, and how are they communicated to him/her?

– What constitutes a crisis requiring immediate notification?

– What issues are beneath the CE, and are considered a waste of time, left for others to resolve?

Point out that all stakeholders need to have a common understanding of what the objectives of the effort are.

Present a clear delineation of what the risks are and how to develop an understanding about how they should be managed and mitigated.

23 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommendations for CIOs (3)

3. Use investment logic mapping and the gate review or similar processes if they exists.

4. Maintain constant communication between the CE, stakeholders, project leaders and the relevant vendors to ensure everyone is working with the same understandings and expectations.

5. Work with your government's audit and/or risk management body to have them help you identify - upfront - the potential risks embodied in the project. Use them to remind the CE, if appropriate.

6. Create Intelligent Consumers at the CE level.

7. Ensure that vendors understand the government's governance model so they know to whom and how communication is to occur related to any problems, statement of work deviations, or contractual expectations. Create a climate based on openness and collaboration between the parties.

8. Engage external project assurance resources to make independent assessment of the progress and risks of the project.

From: “Where the Buck Really Stops for Government IT Project Failure” – John Kost (G00263001)

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Projects are a team sport.

A CIO and/or Project Manager do not alone have the authority to ensure success.

Get business leadership engagement in a project and keep it.

And, your probability of success will go up exponentially.

CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

John Kost

Group Vice President

Delivering Successful Projects

in Government