Moving from money well accounted for to money well spent

1. Moving from money well accounted for to money well spent UK Information Technology Summit May 2005 Helen McDonald A/Chief Information Officer Treasury Board Secretariat

2. The 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

3. Gross IT Spending • Government of Canada spent $5B on IT in 2003-04 • Adjusted for inflation, spending has been close to flat, negative if HR removed $5 M 4,951 4,750 4,728 4,339 4,278 $4 M $3 M 99/00 00/01 01/02 02/03 03/04

4. GoC 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

5. Project 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

6. Realizing Outcomes Outcome management – practices and processes that focus on the delivery of organizational goals and priority outcomes Value • Outcome(s) focus Management • Program management • Opportunity-seeking • Value optimisation • Three dimensions: • Strategic alignment • Performance measures • Risk Project Management • Product delivery • Project management • Budget and schedule • Cost optimisation

7. The 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)

8. IT 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

9. Common 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

10. Managing 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

11. 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

12. Enterprise Portfolio Program Project Operate Plan Build Enterprise Approach

13. Holistic 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

14. 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)