IT Project Alignment Who’s In Charge?

1. Inside Best-Run Governments IT Project AlignmentWho’s In Charge? Robert PowellState Controller, State of North Carolina William GreerDirector, State and Local Gov’t Market Strategy, SAP

2. Technology Has Pervaded The Business of Governing • The business of government is changing: • Where and how work gets done • The level of demand for public services and how government delivers them • The rapidity and maturity of technological advances that make it possible to radically rethink the issues of government capacitance and competencies in doing the public’s business

3. Business Value Meets IT Value • What is Business Value in Government? • The ability to better execute to your organization’s purpose – with equal or less funding • The ability to respond to – even anticipate – the changing demands of your constituency with a level of service that approaches the private sector • The ability to direct financial and human resources towards the programs that show the most significant results – as measured by performance data

4. Business Value Meets IT Value BUSINESS EXPECTATIONS Process change should take weeks/days Constituents demand private sector-level service experiences IT investments deliver public value IT REALITY Hard-wired systems mean process change takes years Disparate IT systems constrain processes Majority of budget spent on maintaining old processes

5. What is IT Project Governance?

6. IT Project Governance • A project approach that aligns the customer’s ongoing needs and expectations with the IT department’s activities • A way to ensure that the use of technology resources are best aligned with public value • A method to link IT project objectives with downstream results

7. DesiredOutcome IT Aligned With Public Value Identify Public Value Objectives Identify IT contribution through IT strategic planning Disciplines Joint Decision Making IT and operating departments work together to steer IT decisions Foundation Targeted Involvement Participants are involved in the decisions most relevant to their interests Customer-Focused IT The IT department is focused on understanding and meeting customer needs Develop Business Cases Prioritize Projects Identify Sources of IT Funding Transparent Funding Decisions for IT Projects Understand Sources of IT Value Assign Accountability for Results Source: GFOA, June 2007

8. Key IT Governance Disciplines – Public Value Objectives PersonalHealthImprovements FinancialSecurity CommunityInvolvement Fame andFortune Stronger FamilyRelationships EnduringFriendships SpiritualGrowth ProfessionalAchievement

9. Key IT Governance Disciplines – Public Value Objectives Lbs/Month $/Year intosavings AnnualVolunteer Days Weekly agentcalls ChristmasCardCount mySpaceFriend Requests Sunday SchoolDays Taught AvailableOffice WallSpace

10. Key IT Governance Disciplines – Public Value Objectives Effective childprotectionprograms Highly efficientwastewatertreatment Safe environmentfor children Best possiblerecreation,safe wildlife Efficienttransportationinfrastructure Attractiverelocation option Minimize burglary,crime Best people inhighest, bestposition

11. Key IT Governance Disciplines – Public Value Objectives Average lengthof case, natureof disposition Compliance w/State and Federalregulations 14 internetpredatorsarrested Annual Park Visits,Tourism Revenues Average time to% snow removal Demographicevolution Results of“Sheriff’s BaitCar” program NEOGOVjob matches,turnover rates

12. Key IT Governance Disciplines • Identify IT contribution through strategic planning • Mission of the organization • Drivers of Public Value • Every project has a business case • Linked to public value • Including measurable expected outcomes • Prioritized project listing • Rolling prioritization • Revisit periodically • Clear and transparent funding for IT projects • Address increases in citizen accountability • SAS 112 – Sarbanes Oxley – OMB A-123 • Define IT contribution to public value • Assign accountability for results

13. Audience Poll • Who is using a standardized process to measure IT investments against business objectives? • Who is working with a long-term prioritized IT project plan? • Was that plan developed by the IT department, your department, or together?

14. Audience Poll • Who uses a process to measure the impact of IT investments on public value? • Whose organizations assign clear accountability for that impact meeting or exceeding the expectations?

15. IT Governance in Action –The North Carolina Controller’s Office • Robert Powell, State Controller

16. BEACON HR/Payroll Projectand Information Technology Governance Robert L. Powell, North Carolina State Controller

17. BEACON Program Background • In 2001, Session Law 2001-491 directed the Office of the State Controller (OSC) to determine the feasibility of developing and implementing a new business infrastructure for the State • Phase I - Inventory and Assessment – of the study, under the direction of OSC with assistance from the Office of State Budget and Management, the Office of Information Technology Services, and the Office of State Personnel was completed April 4, 2003 • Phase II - Blueprint for Selecting Improvement Approach – was completed October 31, 2003 • The study concluded that continued use of the current business systems may adversely impact the fiscal integrity of state government, as well as the efficiency and effectiveness of its operations. Therefore, the State decided upon a replacement strategy that carefully weighs the risks of potential system failures with the current State budget condition and State funding priorities. The strategy involves an extended implementation approach with the first focus on replacing the Human Resources and Payroll Systems

18. BEACON Overview Building Enterprise Access for North Carolina’s Core Operations Needs • Through SB 991, the Legislature approved the recommendation to move forward with an Enterprise Resource Planning solution that would be one integrated system. They further agreed that the approach should be a phased in approach, implemented over a number of years, beginning with those systems at greatest risk of failure • The HR and Payroll systems were the first systems prioritized for replacement • The selected software solution is SAP • The selected vendor for the first phase project (HR/Payroll) is BearingPoint

19. BEACON Program Five-Year Timeline 2006 2007 2008 2009 2010 • PHASE II • LSO (SAP Learning System) • E-recruitment • PHASE I • Personal Administration • Organizational Management • Benefits Administration • Time Management • Payroll • SAP Portal (ESS/MSS) HR/Payroll PHASE I Planning, Scope & Requirements Financials PHASE II Implementation HARDWARE REFRESH & SOFTWARE UPGRADE Upgrade Software Upgrade PHASE I HR/PAYROLL Ongoing Support PHASE II TEM/LSO & E-Recruitment

20. PMIS Central Payroll DOT Payroll HR/Payroll Project Overview Replacing 3 Systems... ..with 1 HR/Payroll System & Web Portal Access Employee Self Service Manager Self Service SAP ERP 2005 SAP ERP 2005

21. Key State Decision Making Bodies ( e.g., Legislature, Governor,State Personnel Commission, etc.) BEACON PMO Change Mgmt. Oversight Committee (CMOC) Standardization Committee BEACON Change Management Team BEACON Functional &Integration Teams Agency BEACON Support Teams Organizational Structure Program Steering Committee

22. BEACON Support Team • BST Sponsors • BST Leads • BST Change Agents • BST Communication Agents • BST Technical Readiness Agents • BST Training Agents • BEACON Subject Matter Experts

23. Agency Participation Timeline 2007 2008 Jan Feb March April May June July Aug Sept Oct Nov Dec Jan Feb March April Cut-Over (2) Design and Build System Payroll Comparison &User Acceptance Testing System Testing (Integration Test 1, 2 &3) Cut-Over (1) Support Support Testing Testing Sponsor Monthly Meetings and Updates to Leadership Monthly Meetings, Weekly Agency BST Updates, Project Management Lead Map Roles to Agency Jobs Assess Impact on Jobs Update/Create Job Descriptions Assess Impact on State Org. Workforce Transition Strategy & Planning Change Realization System Benefits Communication Go-live Expectations and Support Detailed Training & Role Change High Level Training and Job Role Information Shared Project Success and Post Go-Live Training Training Site Identification Schedule Training - Group 1 Training Delivery & Tracking – Group 1 Training Delivery &Tracking – Group2 Training Test Exercises Identify Trainers Training LogisticsPlanning Room Prep – Group 1 Room Prep – Group 2 User AcceptanceTesting Training Agency Support Data Cleansing and Validation Test Preparation SMEs

24. HR/Payroll Budget • North Carolina General Assembly has appropriated $53,866,904 in nonrecurring project funds • 2007-08 Expansion request of $20 million (net of receipts) will be last installment of HR/Payroll Project • Project will be completed on time and under original budget Next Steps • HR/Payroll Phase II $7,390,000 • E-recruit • Learning Solutions/Training and Events Management • Financials Planning $1,500,000

25. BEACON HR/Payroll Project Contact Information • Robert L. Powell, State Controller (919) 981-5406 robert.powell@ncosc.net • Gwen A. Canady, Deputy State Controller (919) 981-5405 gwen.canady@ncosc.net For additional information, visit the BEACON HR/Payroll website at www.beacon.nc.gov.

26. You Might Need An IT Project Governance Overhaul If… • Unclear: • % of the IT budget directed towards maintaining existing versus… • % of the IT budget directed towards new • …and why • Executive and elected/appointed leadership does not view technology investments as strategic enablers of improved public value • The business reason for your IT projects is often unclear and/or un-socialized across stakeholder groups • The success of IT projects is not measured against the original business reason for undertaking the projects.

27. Thank you! • Questions Will Greer Market Strategy DirectorState and Local Government SAP Americas, Inc. Robert Powell State ControllerNorth Carolina 303.885.2792 will.greer@sap.com 919.981.5406 robert.powell@ncosc.net