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New York State City/County New York State City/County Management AssociationManagement Association
What Information Technology Should Be Doing For Your Municipality!
2000 2000
Annual ConferenceAnnual Conference
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IS ManagementThe New Millennium Keystone
IS as a Customer Service Provider Team Management The IS Function and Structure Communications People Issues Outsourcing
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Information Systems Team
The New IS Team • People Skills • Business Skills • Technology Skills • Resource Skills
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Decision Matrix: Cost, Quality, Risk, Outcomes
What is the 10 year average cost for capital and non-capital expenditures?
How complete is application functionality? What is the timetable for completion? How much PAIN is involved in implementation
and use? What are the risks of potential decisions? Just how important is IS management anyway?
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A systematic strategy begins with an effective RFP process
RFP Development Pre-RFP Conference Submission and Evaluation of
Vendor Responses On-site Vendor
Demonstrations with City End-Users
Client-Site Visits with City End-Users
Corporate Site Visits
Contract Negotiations
There must also be MANAGEMENT COMMITMENT TO AN
IMPLEMENTATION PLAN
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Rolling Ten Year Plan: A Reevaluation and Reinvestment Strategy
Item # Description 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
1A Administration / Finance Server 15,000 10,000 1B Office Automation Server 15,000 10,000 1C Print / Exchange Server 10,000 7,500 1D Proxy Server (Firewall) 10,000 7,500 1E City Hall Local Area Network 75,000 1F Wide Area Network (VPN Lease) 20,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 1G 60 New Desktop Computers [30/30] 45,000 45,000 1H Replace Computers 20/yr. @$1,500 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 1I Peripherals - Laser Printers etc. 15,000 10,000 1J Replace Peripherals 5/yr. @ $1000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 1K IBM AS/400 - Public Safety 40,000 40,000 1L IBM AS/400 - City Hall 40,000 40,000 2A Office Automation Applications 35,000 10,000 2B Core Finance Applications 125,000 125,000 2C GIS System Hardware & Software 50,000 50,000 25,000 25,000 2D City Clerk 20,000 2E Citizen Request System 15,000 2F Records Imaging Hardware & Software 50,000 25,000 30,000 Capital Totals 460,000 320,000 100,000 100,000 75,000 165,000 85,000 50,000 50,000 105,000
5 year CAPITAL totals: 1,055,000 10 Year CAPITAL totals: 1,510,000 Percent of 5 Year Budget: 0.92% Percent of 10 Year Budget: 0.66%
3 Training / Consulting 10,000 20,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 5,000 4 New System Setup Contingency 10,000 10,000 10,000 10,000 5 Software Maintenance/Programming 30,000 30,000 40,000 60,000 63,000 66,150 69,458 72,931 76,578 80,407 6 Equipment Maintenance 10,000 20,000 21,000 22,050 23,153 24,311 25,527 26,803 28,143 7 IS Related Personnel Support 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Non-Capital Totals 70,000 90,000 100,000 121,000 110,050 114,303 118,769 123,458 128,381 133,550 5 year NON-CAPITAL totals: 491,050 10 Year NON-CAPITAL totals: 1,109,511
ANNUAL TOTALS 530,000 410,000 200,000 221,000 185,050 279,303 203,769 173,458 178,381 238,550 5 YEAR TOTALS: 1,546,050 10 YEAR TOTALS: 2,619,511
Percent of 5 Year Budget: 1.34% Percent of 10 Year Budget: 1.14%
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Comparative Costs of OptionsANNUAL GENERAL FUND BUDGET: 23,000,000$ CAPITAL and NON-CAPITAL EXPENSES OPTION 1 OPTION 2 OPTION 3OVER 10 YEARS without Network Incremental Development Replace CoreAVERAGE ANNUAL COST OF IS: 142,600$ 149,500$ AVERAGE MONTHLY COST OF IS: 11,883$ 12,458$ requiresAVERAGE WEEKLY COST OF IS: 2,742$ 2,875$ networkAVERAGE DAILY COST OF IS: 391$ 410$
% of BUDGET: 0.62% 0.65%
OVER 10 YEARS with NETWORK:AVERAGE ANNUAL COST OF IS: 170,200$ 181,700$ 262,200$ AVERAGE MONTHLY COST OF IS: 14,183$ 15,142$ 21,850$ AVERAGE WEEKLY COST OF IS: 3,273$ 3,494$ 5,042$ AVERAGE DAILY COST OF IS: 466$ 498$ 718$
% of BUDGET: 0.74% 0.79% 1.14%
Capital and Non-Capital Annual Costs
-
100,000
200,000
300,000
400,000
500,000
600,000
1 2 3 4 5 6 7 8 9 10
Year
Pro
jec
ted
Co
sts
w
/Ne
two
rk
Option 1 Option 2 Option 3
Note the % of budget expended on IS as a ten year average!
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Decision Matrix: Cost, Quality, Risk, OutcomesOPTION Incrementalism Development Replace Core Apps10 Year AverageAnnual Cost forCapital and Non-Capitalexpenditures
$143,000 for RPG programmaintenance, IS support,hardware replacement
$170,000 with LAN
$182,000 for new RPGprogramming, programmaintenance, LAN, ISsupport, hardwarereplacement$149,000 w/o LAN
$262,000 for replacement ofcore accounting system, RPGprogram maintenance, financesoftware maintenance, LAN,IS support, hardwarereplacement
ApplicationFunctionality
Weak in core finance areas,poor integration.Satisfaction by Utility,Police and Fire users butcould be improved.
Could improve financeusability, but likely tocontinue to be limited inrange of functions. Putenergy toward public safetyimprovements.
Improve public safetyprograms. Migrate to robust,integrated financialapplications with ease of useand modern computer-basedtools for accounting andmanagement.
Timetable forcompletion andbenefit
Ongoing maintenance ofRPG programs. Nosignificant benefits.
One year to completion ofnew programming, ongoingmaintenance of RPGprograms. Improvedusability.
One year from new productstartup, reach peak levelbenefit in third year. OngoingRPG maintenance.
Pain ofimplementingand use
Finance doing significantmanual entry, and laboriousresearch.
Will not achieve thefunctionality of modernapplication software runningunder Windows
Training and adjustmentperiod, but usability willachieve productivity
Risk of chosendecision
High risk - Current financesystem is not providingtimely or accurateinformation. City is slidingbackward compared tobenchmark cities.Significant compromises inquality of information andcommunication. Wastingfinance human resources.
Medium risk- Singlecustomer dependent on 1person. Uncertainty ofamiable, satisfactoryreplacement. Splicing newcode onto system of olddesign. Not benefiting fromon going vendordevelopment of dedicated,competitive product.
Low risk-- proven financevendors with regular upgrades.Application quality tested incompetitive assessments.Customer drivenimprovements. Usingtechnology tools to providebetter query, reporting,presentation, timely andaccurate information. Toolsfor advanced analysis.
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Right-sizing for Size and BudgetGovernment IS IS Cost Per
Government Population Budget Budget CapitaCanby, OR 11,000 $5,000,000 $0 $0Lower Allen, PA 15,254 $4,900,000 $32,400 $2Schectady School 66,000 $69,000,000 $155,500 $2Madison, WI Wat 55,000 $12,600,000 $162,000 $3Portage, OH 145,000 $107,022,892 $463,259 $3Fulton, NY 55,000 $62,000,000 $199,766 $4Freeport, NY 40,000 $50,000,000 $405,650 $10Concord, NH 37,000 $37,000,000 $490,000 $13Athens/Clarke, GA 88,000 $100,000,000 $1,385,147 $16Schoharie, NY 31,000 $35,662,281 $496,000 $16Waukesha, WI 57,000 $15,000,000 $2,500,000 $44
AVERAGE $10
IS Director, Outside PopulationGovernment Programmers Contractors per
Government Population Budget and Analysts IS Staff/ConsltCanby, OR 11,000 $5,000,000 0 0 0Walkesha, WI 57,000 $65,000,000 12 3 3,800Schoharie, NY 31,000 $35,662,281 5 2 4,429Georgetown, KY Water 18,000 $5,200,000 0 3 6,000Athens/Clarke, GA 88,000 $100,000,000 13 1 6,286Freeport, NY 40,000 $50,000,000 4 2 6,667Lower Allen, PA 15,254 $4,900,000 1 1 7,627Elmira, NY 33,724 $20,300,000 3 0 11,241Concord, NH 37,000 $37,000,000 3 0 12,333Fulton, NY 55,000 $62,000,000 3 0 18,333Portage, OH 145,000 $107,022,892 4 2 24,167Schnectady School 66,000 $69,000,000 2 0 33,000Madison, WI Water 55,000 $12,600,000 1 0 55,000
IS cost per capita
IS staff per capita
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Comparison Municipalities
City Elmira Geneva Watertown Troy Ithaca Product MUNIS KVS KVS GE/Great Plains MUNIS Investment $400,000 $ 250,000 $500,000 $600,000 $400,000 Primary Benefits
Costing allows rigorous tracking of expenses against budget, controlled reductions of taxes and enhanced management without staff increases.
Year 2000 readiness, modernizing accounting practices, bringing integration of functions together.
Year 2000 readiness, modernizing accounting practices, vision of enhanced service to taxpayers and citizens
Migrating from manual system to automation for cost savings and customer service, and better quality information for management of revenue and expenses
Automating government for process efficiency and accounting control
Other Networking of City Hall (LAN) enhances intra/interoffice communication and information sharing, leading to better internal and external customer service
Does your local government have the information tools to Does your local government have the information tools to compete and succeed in the face of competition for scarce compete and succeed in the face of competition for scarce resources?resources?
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Sample Timetable for Finance Installation
July August September OctoberNovember January
1999
Develop RFPIssue Letter toVendorsVendors
Release RFP.City holdspre bid conference
Client visitsand ContractNegotiations
Evaluate RFPsAndSchedule On-SiteDemos
On-SiteDemos Vendor
Installs
2000
LAN Install
When is a good time to implement a new system?
From contract signing: plan a minimum 6 months to implement
The Steps: Preparation, installation, training, testing, “go live”
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System Cost / Productivity Benefit
Information Technology Return on Investment
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
1 2 3 4 5 6 7 8 9 10
Year
Am
ou
nt
Capital Totals
ISS Salary & Fringe
Productivity
More productivity out of existing positions, or stable productivity with fewer positions – you may have a choice…
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The Measure of Success COST CONTAINMENT - to increase
efficiency and contain or reduce cost; STREAMLINE OPERATIONS - to increase the
productivity of existing personnel and provide policy makers with essential management information;
ENHANCED SERVICE - to provide employees with the tools to effectively represent and successfully deliver the services of government;
ACCOUNTABILITY - to provide clear cost and service justifications for services provided to citizens and taxpayers.
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A Cost Effective Solution Need an assessment and plan
– Familiarity with functions of application
– A good sense of “what is out there”– Link to present and future
Application is proven and has a secure future
Hardware meets industry standards and is low maintenance
Internal Staff and users are able to support application system
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Cost Containment Investment in new information technology is not additive to government operations, but
should probably reduce or avert future costs. Assume that the annual increased requirements forced upon the City by Federal, State,
Regulatory and Court mandates is 10% per year, then without the aid of technology, it would be expected that the City would have to hire 10% additional clerical and administrative staff each year.
Over a five year period this increase would net out to a minimum of a 50% increase in
staff, plus the associated increases in cost of living and the extra fringe benefits these new employees would cost.
Investment in technology is a prudent “cost avoidance” strategy. A good system should
easily increase the productivity of the current staff and it should significantly reduce much of the redundant paperwork.
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Cost Containment Sampler Better cash and investment management. Up-to-the-
minute status of cash requirements would enable local government to have a more aggressive investment strategy;
Project and grant tracking: The government could track its services, payments, and process awards and reimbursements in a timely and accurate manner;
A modern purchasing system: Streamlined operations using on-line requisition and approval, and consolidation of purchases and using the bid process will save money;
A modern accounting system: Allows the budget to drive all financial reporting, as well as multi-year budgeting, and CIP budgeting and tracking. This should provide management with timely and accurate reporting, and allow the finance officer and accountants to do more advanced investment, analytic, and accounting work, resulting in more revenue, reduced expenses, and ultimately, effectively reducing the tax rate.
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Streamlining Departments and their
employees are the data owners and are responsible for its integrity
Data access should be on-line and real-time
Authorized users should have access to all common data [i.e., financials, payroll, personnel]
Departments should be networked via a common backbone
Citizens should have rights to public information via a counter top station or the Internet
General Ledger,Accounts PayableBudgetingPurchasing
Work OrdersJob OrdersComplaint Tracking
Accounts Receivable
E-mail,Legislativeproceedings,Council Agendas,DocumentTracking
Land UseBuilding PermitsCode ViolationsInspectionsGIS/Mapping
HOLISTIC INFORMATION SYSTEMSACCESS TODATABASE
PayrollHuman ResourcesPersonnelLeave Tracking
Ad Hoc Reporting
INFO
BACKBONE
Refuse feesPermit feesTaxesMisc. fees
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Provide Productivity Tools
Financials
Payroll/Human Resources
Personnel
Work Orders
CapitalProjects
Tax Assessment/Billing/Collections
FixedAssets
Receivables
GeographicInformation
Systems/Mapping
General LedgerAccounts PayablePurchasing, Budget
Job CostingFees, FinesCharges
Inventory
Solid Waste
Utility Billing/Collections/CustomerService
End User
INTEGRATED SYSTEM ACCESS
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Information Technology Principles Departments and their employees are the data
owners and are responsible for its integrity
Data access should be on-line and real-time
Authorized users should have access to all common data [i.e., financials, payroll, personnel]
Departments should be networked via a common fiber optic backbone
Citizens should have rights to public information via a kiosk or PC access through the Internet
Local Government should sell data in modes that are not normally available, such as CD-ROM, modem, or the Internet
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Problems: People and Procedures
Users indicate that "work is not getting done because of system inefficiencies," and that they are perpetually in "crisis mode"
Employees administer local government in spite of the system, relying on the use of tools that are old, and not fully integrated, not well shared, and not well-managed according to basic information processing principles
Processing of almost all information is so cumbersome that it delays processes, yet does not control money or property
Time spent on these duplicative record collection and query tasks could be better spent on better administration of programs
People do not have access or tools to pass management information back and forth
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Problems: Procedures, Process and Paperwork
Lack of benefit of a centralized and commonly shared information system
Data Processing model -- Preoccupation is with collecting data, not easily retrieval and query
Lack of department access to on-line and real-time access to information about their budgets, expenditures or revenues
Many departments keep their own separate records Personnel records and functions are dispersed throughout
the various departments of the City resulting in duplication of efforts and inability to provide rapid access to the necessary information
Most data continues to move from department to department via hand delivery, fax, and voice communication
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Problems: Productivity Many current system do not provide management with
rapid and effortless access to reports that provide cost of services and productivity information
Ad hoc query of the data is often difficult, printouts are usually lengthy, and consolidation of information is inefficient
Many current systems are unable to expand in capacity and function to meet needs of the local government and are obstacles to enhanced integration and services
Information Anarchy --information lacks coordination, integration, and direction
Governments often "use a trowel when it needs a shovel" in regards to its information processing capability
MOST PROBLEMS, however, are MANAGEMENT PROBLEMS of COMMITMENT and COORDINATION
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Networking The Enterprise Problems
– responsibility for installation, configuration and maintenance
– deciding best tools and strategies for providing access
– determine how routers, bridges, and WANs affect performance
– deciding how much access to allow
Decisions? Servers centralized or
remain in departments? Central or department
control of administration central control of routers
and interdepartmental issues
standardizations of NOS and LAN/WAN hardware
centralized support and service with local First Responders
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Major Transitions in I/T
Moving from hierarchical architectures to client/server distributed architectures
Moving towards high capacity connectivity through low-cost wide area networks
Moving from proprietary systems to standard integrating technologies
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Consolidation and Centralization
Problems– System administration
– Support and Maintenance
– Location and organization of servers
– Security and control of data
– Management of Software Licensing
– Optimizing server and LAN hardware and configurations
– Reducing or eliminating downtime
Solutions– Department servers linked
to centralized super-servers– Central administration of
system-wide tasks– Departmental
administration of users– Centralized support- at right
level, with specialists and help desk, tools
– Centralized security policy, virus monitoring, optimization
– Centralized software licensing controls
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Interoperability and Scalability Interoperability
– Relational database on desktop computer
– Relational database used on a LAN, UNIX or Windows 98/NT/2000
– Migrate to SQL-based system on LAN, UNIX or Windows NT
– Supports N-tier Client/Server – database independent, Operating System independent
– Browser-based
Scalability– Powerful migration path
for expansion and performance:
• Standalone PC• Local Area Network• Wide-Area Network• Client/Server system,
including PC, RISC, and Alpha systems
• Internet• Provides enhanced
security
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What is a Network?
WAN Server
UNIX
Server
UNIX
IBM compatibleUNIX
IBM compatible
LAN Server
IBM compatible
IBM compatibleIBM compatible
WAN Server
IBM compatible
Server
IBM compatible
IBM compatibleIBM compatible
IBM compatible
Server
IBM compatible
IBM compatibleIBM compatible
IBM compatible
Server
IBM compatible
IBM compatibleIBM compatible
WAN Server
IBM compatible
Server
IBM compatible
IBM compatibleIBM compatible
IBM compatible
Server
IBM compatible
IBM compatibleIBM compatible
CIS Host Unitsfor WAN
Management
Ethernet
Routers
CIS: Wide AreaNetwork LinkagePublic Safety Division
NETWORKS
Administrative DivisionNETWORKS
Schematic of an Integrated"COMMUNITY OF NETWORKS"
---
= Operating System Independence= Application Sharing within Divisions
= Data Passing Between Divisions
Police Network
Fire Network
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Networking Benefits– Flexibility in resource sharing: Strategically located printers and
input/output devices serve more users at less cost– Network programs easier to use and monitor --all data loaded
onto a file server(s). Data accessed through menus displayed on workstation screen.
– Central data storage eliminates need for employees to use floppy disks and reduces risk of loss or damage to disks or data. Software costs reduced by buying one network package.
– Networking provides an opportunity for interaction, collaboration, and file exchange.
– Networking facilitates group cooperation -- information from one workstation can be shared with other workstations.
– Networks enable immediate use of cable system.– Networking points us towards the future and centers on the
merging of local area networks (LANs) and telecommunications.
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LAN/WAN Design Considerations detailed information on the activities performed by the
municipality types of users and access priorities, size of the network geographical distribution of network nodes frequency of use availability of LAN/WAN service equipment meantime-between-failure compatibility and interoperability of Internetwork
equipment with other systems it must connect to now or in future
availability of funds
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Representative Data Traffic
Object StandardData amount
CompressedData Amount
1 Page business letter,Simple E-Mail Message orFinancial System TransactionRequest
5,000 bits (5Kb) 1,300 bits (1.3Kb)
20 page document withgraphics
40,000,000 bits (40 Mb) 10,000,000 bits (10 Mb)
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LAN Design
Access protocols• access to media• rules and methods for communication between NICs
Topology• the manner in which cabling is laid out
Cabling• Bounded and unbounded media
– Concerns are length, attenuation, cross-talk, noise, & loss
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Selecting a LAN Protocol - SampleWeighted Scoring for Selection of a LAN TypeFactor Ethernet Token RingFast Ether Arcnet FDDI/CDDI100 BASE-VGPerformance (10) 2 3 5 1 5 5Latency (10) 5 4 5 5 5 5Stability (10) 3 5 2 5 5 5Acceptance (5) 5 4 5* 3 4 4*Availability (5) 5 4 2* 2 5 2*Cabling Choice (8) 5 4 4 3 3 5Error Control (8) 1 5 1 4 5 2*Cost (7) 5 4 5 5 1 5Weighted Scores 233 260 230 226 266 271
Thin client or thick client? Performance vs. Cost?
Internet access, and Internet-based applications?
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Selecting a LAN Topology
BUS -- each bit is broadcast to all other nodes• Linear -- cable segments joined with repeaters• Star -- cable segments go to multiport repeater called a
wiring concentrator or hub
RING -- each node is a repeater that transmits bits to its nearest upstream neighbor
• Simple Ring -- configured into a physical ring• Star-wired Ring -- Multi-station access unit that is
physical switching device hub
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WAN Protocols
Operate between nodes on the WAN Used across communications links that
span long distances and use telecommunications
Generally point-to-point oriented (between sender and receiver)
Is full-duplex (transmits in both directions concurrently)
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Types of WAN Protocols TCP/IP - Transmission Control Protocol/Internet
Protocol• ties many hosts into internetworks• strong interoperability
PPP - Point to Point Protocol• synchronous protocol• not restricted by speed
ATM - Asynchronous Transmission Mode• newest protocol -- very high throughput• potential for common LAN/WAN protocol
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Graphical User Interface (GUI)
Extremely easy to use point and click Is based on industry standard Microsoft
Windows Creative and useful tools are readily available Data is available in multiple windows Pictures and text convey quality information Supports dynamic data exchange between
Windows-based applications
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GUI Users...
work faster work better (complete
more of their tasks accurately) than Character User Interfaces (CUI) users
have higher productivity than CUI users
express lower frustration
perceive lower fatigue after working with microcomputer
are better able than CUI users to self-teach and explore
are able to learn more capabilities of the application
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Paradigms for Change
OLD NEW Back Office Relationships and
Communication
Operational Mission-oriented Dictatorial Teamwork
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Managing a game plan for change – the 7 impediments to change:
1. Lack of vision 2. Failure to handle the change curve 3. Defensiveness and threats 4. Bureaucracy – inter/intra group issues 5. Envy, conflict and distrust 6. Lack of support structure and working
environment for change 7. “Crabs” - people who prevent you from
doing new things
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Building an effective work environment
Structure supports identity Encourage autonomy - build implementation
plan with each employee
Creating support groups Mentoring and Training Leadership and honesty Replenish energy with recognition
methods
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How do we get there? What are the missions and outcomes?
– What are Critical Success Factors? – Other opportunities and uses of organization and
data The users drive the process in satisfying
competing clients Good management is the art of getting
average people to do superior work
PLANNING: Attention to mission and to outcomes
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ORGANIZING: Who is going to perform what function? Employee goals can be at odds with
organizational goals
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DIRECTING is “hands on,” it is a one-to-one contact sport
Teamwork, supervision, productivity FOCUS is the MISSION You have to PULL, not PUSH
– Leadership: getting people to want to follow
No “bad guy” when expectations are clear -- no surprises!
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CONTROLLING is measuring results and making adjustments
Analysis, standards, monitoring, feedback, correcting
Attention to OUTCOMESFaster service deliveryHigh client satisfactionReduction of errors and costEnhance service and build moraleEffective politics
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Information Technology Recommendations
Demonstrate that management is 110% behind the project
Identify management opportunities and obstacles Work with managers on commitment and
coordination of efforts Pay attention to network infrastructure (LAN/WAN
and Internet), and standardize desktops on Windows 98 or Windows 2000
Make sure that core financial system is an effective tool for daily work flow and management analysis
Provide extensive application training to employees Convene re-engineering retreats
The First Aid Creed: “At least do no harm”
Barry Strock Consulting Associates, Inc.
Thank you!
Barry Strock, PresidentJack D. Harris, Ph.D., National Director