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Marcus Glasper, Deputy Director

Washington State Department of Revenue

WSATA 2016

Scottsdale, AZ

Governance and Organizational Change Management Key Components for Large I.T. Projects

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“This had better be good.”

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• About Washington’s replacement project

• Top reasons why projects fail

• Governance

o Importance; Washington’s approach

• Top reasons why projects succeed

• Organizational Change Management

o Purpose; components; Washington’s approach

Outline

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Vision

Transforming Revenue’s future through collaborative efforts,

improved processes and proven technology solutions.

Scope

The scope of the project is defined by

the following:

• Implementing a solution that

supports the administration of the

core tax and business licensing

programs

• Work efforts to prepare people

and systems to use the new

solution

• Replacement of over 40 aging tax

and licensing applications

TLSR

IDOCS

EPMS

TIRTS

Excise Tax

E-file

TARIS

BRMS

Audit 2000

BLS

CRMS

We have completed the first of three launches for the Tax and Licensing System

Replacement (TLSR) project

Background – About Washington’s Project

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Top Reasons Why Projects Fail

Reason What this requires

Strategy failures Solving the right problems

Engagement Failures Effective stakeholder involvement

Organizational and planning failures The right amount of planning and

communication

Governance and Leadership failures Appropriate accountability and

escalation processes

Underestimation and analysis failures Understanding the required complexity

Quality failures Ensuring that deliverables are within

acceptable tolerances

Risk failures Paying the right amount of proactive

attention to risks

Skills, knowledge and competency

failures

Ensuring the right skills on the team

(project and extended)

Depending on the research source, only 30 to 40 percent of projects are deemed successful

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Project Governance

• A strong, clear and well understood governance is critical to

project success and includes:

Active and invested executive sponsor

Active and involved business and technology sponsors

Active and engaged steering committee

Clear articulation of what decisions are made, who can make

them, when they are made, and rationale (business and

technical)

Simple and clear project management plan, which provides a

framework for how the project operates, tracks and evidences

progress

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Active and Engaged Executive Sponsor

• The executive sponsor is a critical role outlined in project

management methodology and is responsible to the

enterprise for the success of the project.

• In addition to the positional attribute (authority), five

personal attributes of the sponsor are:

understanding

competence

credibility

commitment

engagement

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Executive Sponsor Responsibilities

• Champions the project – sets the tone and vision

• Sponsors the project – chairs the steering committee

• Provides oversight – approves and supports governance

• Engages project stakeholders – including other agencies

• Brings visibility internally and externally

• Governs project risk – monitors and mitigates key risks

• Supports the project director and project leadership

• Provides financial and human resources

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Business Sponsor Technology Sponsor

Provides business leadership and

guidance

Provides technology leadership and

guidance

Supports and communicates business

vision

Ensures alignment with short term and

long term technology roadmap

Monitors and leads business decisions

throughout the project

Monitors, leads and communicates

technology decisions

Sponsors readiness of internal and

external stakeholders

Ensures that I.S. is ready for the new

solution after project completion

Communicates and engages business

counterparts

Communicates and engages within I.S.

and other state I.S./I.T. bodies

Assigns the right business skills,

experience and resources

Assigns the right technology skills,

experience and resources

Larger projects require additional sponsor roles to ensure timely attention to decisions, risks

and issues

The business sponsor and technology sponsor are generally key members of the steering committee

Business and Technology Sponsors

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Steering Committee Responsibilities

• Guides the project – owns the outcomes of the project

• Fosters commitment – across and down divisions

• Provides oversight – approves and supports governance

• Manages change – across agency and divisions

• Supports risk and issue processes – proactively manage risks

• Actively monitors progress – to established metrics and tolerances

• Supports the project team – project leadership

• Provides skills, experience and resources – as required

An active steering committee is a known key to success

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TLSR Project Governance

Ente

rprise P

roje

ct Man

agem

en

t

Stakeh

old

er En

gagem

en

t

Vision & Objectives

Project Portfolio

Program & Project

Business

Technology

Project

Project Leadership Team

Project Team

Subject Matter Experts

All Stakeholders

Data Governance Committee

Steering Committee

Executive Sponsor

Core Project Leadership Team

Project Director (includes Assistant Project Directors)

Quality Assurance

Technical Steering Committee

Ente

rprise P

roje

ct Man

agem

en

t En

terp

rise Pro

ject M

anage

me

nt

Stakeh

old

er En

gagem

en

t Stake

ho

lder

Engage

me

nt

Vision & Objectives Vision & Objectives

Project Portfolio

Project Portfolio

Program & Project

Program & Project

Business

Business

Technology

Technology

Project

Project

Project Leadership Team Project Leadership Team

Project Team Project Team

Subject Matter Experts Subject Matter Experts

All Stakeholders All Stakeholders

Data Governance Committee Data Governance Committee

Steering Committee Steering Committee

Executive Sponsor Executive Sponsor

Core Project Leadership Team Core Project Leadership Team

Project Director (includes Assistant Project Directors)

Project Director (includes Assistant Project Directors)

Quality Assurance

Quality Assurance

Technical Steering Committee Technical Steering Committee

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Decision Model Decision making is pushed to the lowest level possible

Business Decision Teams Functional Area Team(s)

Decision

Review

Team (DRT)

Executive

Decision Team

Roles

Subje

ct M

atte

r

Expert

s (S

MEs)

Deve

lopers

/

Tech

nic

al S

MEs

Deci

sion M

akin

g

SM

Es

Busi

ness

Anal

yst(

s) (

BA

)

Busi

ness

Lead

(s)

(BL)

TLSR

Pro

ject

Dir

ect

or,

or

desi

gnee

Pro

ject

Busi

ness

Sponso

r, o

r

desi

gnee

Ste

eri

ng

Co

mm

itte

e

Execu

tive

Sponso

r

DO

R D

irect

or

Configuration decision related to a

specification/requirement that:

a. Does not change a current business activity

within a business process; same functionality;

only one configuration option

C C R C R A I I I I I

b. Does not change a current business activity

within a business process; same functionality;

multiple configuration options

C C R C R A I I I I I

c. Changes a current business activity within a

business process; has a minor impact; affects a

single division or multiple divisions

C C R C R A I I I I I

d. Changes a current business activity within a

business process; has a moderate impact; affects

a single division or multiple divisions; with team

consensus

C C R C R A I I I I I

e. Changes a current business activity within a

business process; has a significant impact C C REC C REC REC REC R A I

f. Requires customization to the COTS (GenTax)

Solution C C REC C REC REC REC REC R A

g. Is outside of the current scope; requires a change

request

Example: Addition of Local Tax.

C C REC C REC REC REC REC R A

Responsible

Accountable (also

Approver)

Recommendation

Consulted

Informed (also Reviewer)

RA(R)CI Chart:

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Decision Process Roles & Responsibilities

Executive Decision Team

Confirm, revise or overturn decisions made by DRT

Make decisions on open "Decision Needed" items

Document decision outcomes

Decision Review Team (DRT)

Confirm, revise or overturn decisions made by

Functional Area Teams

Make decision on open "Decision Needed" items

Escalate? Document as "Decision Needed" and

provide recommendation

Document decision outcomes

Review Executive Decision Team

outcomes

Functional Area Teams

Identify need for a decision Make decision. Document as

required and include assumptions

Need to escalate? Document as "Decision Needed" and provide recommendation

Review Decision Review Team and Executive Decision Team

outcomes

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Decision Arbitration Process

• Arbitration Path should there not be consensus

Conflict Scenario Recommended Escalation

(Unless conflict is related to a customization or addition to scope,

then Agency Director)

Business to Business Senior Assistant Director of Operations

Business to Information

Services (I.S.) or

Administrative Services

Senior Assistant Director of Operations

to consult with Senior Assistant Director of Administrative

Services

Contractor to Revenue TLSR

Resource Executive Sponsor via TLSR Project Director

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Top Reasons Why Projects Fail

Reason What this requires

Strategy failures Solving the right problems

Engagement Failures Effective stakeholder involvement

Organizational and planning failures The right amount of planning and

communication

Governance and Leadership failures Appropriate accountability and

escalation processes

Underestimation and analysis failures Understanding the required complexity

Quality failures Ensuring that deliverables are within

acceptable tolerances

Risk failures Paying the right amount of proactive

attention to risks

Skills, knowledge and competency

failures

Ensuring the right skills on the team

(project and extended)

Depending on the research source, only 30 to 40 percent of projects are deemed successful

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Top Reasons Why Projects Succeed

Reason Description

Creating partnerships with

stakeholders

Internal, external and vendors involved

“Selling” to the stakeholders Breaking down attachment to the status

quo

Adequately resourcing the project People with the most knowledge are often

needed for most of the project

Effective management of expectations

and communications

The solution cannot be everything to

everybody and must be managed

Encouraging functional ownership Promoting (business) ownership at the

onset and throughout the project

Implementing business readiness

assessments

Ensuring that activities to promote

readiness and adoption are effective

A project governance that promotes

quick response

Clearly defined rol3es, responsibilities and

escalation/resolution processes

Depending on the research source, only 30 to 40 percent of projects are deemed successful

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Guide leaders and change network in

effectively leading, supporting positive

change

Inform, prepare staff (and customers) on

how to deal with the new changes

Facilitate letting go of ingrained practices and

moving to new ways of doing business

Create a climate of change competence –

build the learning aspects of organizational

change

Minimize disruption with the transition and

realize business benefits earlier

• Address the impacts of change, before they occur, by initiating

a series of strategic and tactical activities designed to:

Organizational Change Management

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Proactively addressing change manages concerns, helps stakeholders realize the benefits

earlier

Perception of Change Through the Project

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Critical First Step – Analyze Stakeholders

Who (internal and external) will be affected by this change? How are they important to the success?

o What groups?

o What individuals?

o What customers?

Stakeholders need to understand:

• What the change is

• Reason for change

• Level of impact

• What their roles are in effecting the

change

• How they will be supported

throughout the change

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Create an Accountability Framework

Executives, sponsors and steering committee

Stakeholder groups

OCM Team

PMO & project team

Change/business network

Understand stakeholder needs

Engage early and often

Address business impacts

Collaborate and communicate

Lead at all levels

Support the process and the

teams to maximize success

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The Role of the Change Sponsors/Champions

• Provide direction on approach

• Mitigate resistance at all levels

• Manage stakeholder expectations

• Promote accountability for the success of the change

• Empower change champions to be able to affect change and

elevate key issues to executive sponsor as required

• Create “sense of urgency”

• Participate in key change activities and communication events

• Promote the change at all levels

• Manage risks and issues proactively

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OCM Cycle for Washington – Rollout 1

Rollout 1 OCM Cycle GO LIVE GO LIVE

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

Monitor and Measure Readiness, Engage Stakeholders and Communicate

Develop and Manage Sustainable Activities

• Update high level change assessment • Assess readiness • Develop detailed stakeholder matrix • Develop vision, measures, messages • Align strategies with COTS vendor • Develop process impacts plan • Develop OCM plan • Develop communications and stakeholder

engagement plan • Align change network plan and model • Assess DOR change needs and capabilities • Assess Rollout 1 training needs • Validate and align with COTS vendor plans

• Validate organization and process impacts • Assess readiness for Rollout 1 (user acceptance) • Refine approaches and plans based on assessments • Execute OCM plan • Execute communications and stakeholder

engagement plans • Execute process impacts plan • Build change needs/capability • Determine and establish post go-live support model • Assess readiness for Rollout 1 Go-Live

Month 9

• Evaluate knowledge transfer • Monitor transition of Rollout 1 • Monitor support model

effectiveness • Refine support model as required • Conduct post implementation

review (lessons learned) • Monitor and manage sustainable

activities for Rollout 1

Month 10 Month 11 Month 12

Mentor and Support Change Capability

Reinforcing

Preparing and Aligning

Managing

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It’s not the strongest species nor the most intelligent that survives - it is the one that is

most adaptable to change. Charles Darwin

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Questions?