Odyssey Programme
IQA Report
Prepared for:
Wellington City Council
Prepared by:
Equinox IT
June 2014
Identification
Document Name
Odyssey Programme IQA Report
Author
Paul Ramsay, Principal Consultant, Equinox IT
Date Created
26 May 2014
Date Last Saved
30 June 2014
Document File Name
wcc odyssey programme iqa report june 2014_v1.1
Change Record
Version
Date
Summary of Changes
DRAFT 0.1
26 May 2014
Initial draft
DRAFT 0.2
16 June 2014
Revised draft following initial review
FINAL 1.0
19 June 2014
Final version for publication
FINAL 1.1
30 June 2014
Minor amendments following further review
Reviewer
Name
Position
Carl Weller
Senior Consultant, Equinox IT
Approvals
Initial
Date
Name
Position
Equinox IT is New Zealand’s leading independent IT consultancy, delivering software
development, consulting and training services. Established in 1995, we inject fresh
thinking to solve tough business problems. Equinox IT has over 60 staff based in
Wellington and Auckland.
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Contents
Executive Summary .................................................................................. 4
1
Introduction ................................................................................. 5
1.1
Background ...................................................................................................... 5
1.2
Objective .......................................................................................................... 5
1.3
Approach .......................................................................................................... 5
1.4
Documentation ................................................................................................ 6
1.5
Interviews ........................................................................................................ 6
2
Findings ........................................................................................ 7
2.1
Scope ................................................................................................................ 7
2.2
Expectations ..................................................................................................... 7
2.3
Trade-offs ......................................................................................................... 8
2.4
Request for Proposal ....................................................................................... 9
2.5
Evaluation ........................................................................................................ 9
2.6
Selection .......................................................................................................... 9
2.7
Implementation ............................................................................................... 9
2.8
Business Case ................................................................................................. 10
2.9
Programme Delivery ...................................................................................... 10
2.9.1
Sponsorship ............................................................................................................... 10
2.9.2
Governance ............................................................................................................... 11
2.9.3
Management ............................................................................................................. 11
2.9.4
Resourcing ................................................................................................................. 11
2.9.5
Reporting ................................................................................................................... 11
2.10
Change Management .................................................................................... 12
3
Recommendations ..................................................................... 13
4
Next Review ............................................................................... 14
Appendix 1 – Programme Manifesto ..................................................... 15
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Executive Summary
This report provides an independent ‘current state’ assessment of the Odyssey Programme.
The following are the key findings of this review:
1. This is a major business transformation programme which must be actively owned and
managed by the business. The Programme needs to enable and equip the business to
carry out this role. Likewise, the business must be prepared to make the decisions
needed for the Programme to succeed.
2. Consistent with this, it is important that front-line staff continue to be actively involved
in all aspects of the Programme.
3. Support for the Programme is considered to be relatively ‘soft’ at present given the
overall implementation timeframe and the lack of any real commitment being required
at this time. This is unlikely to change in the short-term until the importance and
impact of the Programme is more widely understood.
4. Communication within the Council needs to be carefully managed, particularly in terms
of what to communicate to whom and when – noting that this is an art not a science.
Too early and it will heighten expectations with the risk of disillusionment – too late and
it has the potential to materially impact the delivery of the Programme.
5. The implications of the proposed approach as reflected in the Programme Manifesto
and other key concepts underpinning the implementation of the Programme need to be
more fully explored. This includes developing a greater understanding of what these
principles and concepts mean in practice and the likely trade-offs that may be required.
6. The Council needs to develop a long-term view as to how services will be delivered
within the context of the chosen solution (i.e. its future business operating model) and
how these changes will enable it to realise the ‘best practice’ encapsulated within the
chosen solution.
7. In choosing its preferred solution, the Council is also choosing a long-term
implementation partner. It is important that this implementation partner shares similar
values to the Council and has a long-term commitment to customer service and product
development.
8. Very careful thought must be given to the implementation of the chosen solution. This
includes the order and sequencing of modules, and the rationalisation and
simplification of business processes prior to implementation.
9. The preceding actions need to inform the development of a comprehensive business
case. This must clearly set out the business results expected to be achieved, and
accountability for benefits realisation needs to be accepted by the relevant Business
Units within the Council.
10. The management and resourcing of the Programme needs to develop in-step with its
increasing growth and complexity.
Each of these findings and supporting recommendations are set out in this report.
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1 Introduction
1.1
Background
The Wellington City Council is currently undertaking a significant business transformation
programme – the Odyssey Programme – to select and implement a core information
technology (IT) system which is expected to enable the achievement of the following
objectives:
To ensure the Programme has the appropriate amount of oversight to achieve these
objectives, the Council has requested Equinox IT to provide an Independent Quality
Assurance (IQA) service.
1.2
Objective
The primary objective of these IQA reviews is to provide an independent assessment of the
status of the Programme at a given point in time.
Following an initial ‘current state’ assessment (the subject of this report), subsequent
assessments will focus on the project management and technical processes followed and
deliverables produced over the life of the Programme.
While providing general observations and specific recommendations to assist the Council in
achieving the stated objectives of this Programme, these assessments are also an
opportunity to provide practical advice and guidance to the Programme.
1.3
Approach
The basic structure of each assessment includes (but is not limited to):
Reviewing relevant documentation
Interviewing nominated Council staff and suppliers
Reviewing and assessing the information obtained
Drafting the findings and recommendations for initial review
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Incorporating any changes needed as a result of this review
Completing the final report.
1.4
Documentation
The following documents were reviewed for this report:
Odyssey Programme Management Plan, Draft – October 2013
Odyssey Programme Procurement Project Management Plan, Draft – October 2013
Odyssey Programme Procurement Phase Business Case, Version 0.3 – 14 November
2013
Odyssey Programme Status Report, 28 February 2014
Odyssey Steering Group Minutes, 28 February 2014
Odyssey Programme Request for Proposal, 7 March 2014
Odyssey Programme Risk Register, 1 April 2014
Odyssey Stakeholder Summary, 1 April 2014
Odyssey Programme Change Management Plan, Version 1.2 – 9 June 2014
Odyssey Programme Communications Log – 11 June 2014.
1.5
Interviews
The following people were interviewed for this report:
Andy Matthews, Chief Financial Officer (Steering Group Member)
Anthony Wilson, Chief Asset Officer (Programme Owner)
Brian Hannah, Director Strategy and External Relations
Deanna Sorrell, Business Change Manager
Derek Fry, Director City Growth and Partnerships
Greg Orchard, Chief Operating Officer (Steering Group Member)
Kevin Lavery, Chief Executive Officer (Programme Sponsor)
Nicola Brown, Director Human Resources (Steering Group Member)
Roy Baker, General Manager Corporate Services, Porirua City Council (Steering Group
Member)
Sally Dossor, Director Chief Executive’s Office
Steve Marchant, Odyssey Programme Manager and Procurement Project Manager.
The author would like to thank all those involved for their contribution and support.
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2 Findings
2.1
Scope
It is understood that the Programme originally arose out of an IT consolidation and cost
reduction exercise, but was subsequently broadened to include wider business objectives.
The Programme currently reflects this heritage – a view reinforced by the current selection
of a ‘system’ – but it needs to continue to be repositioned as a ‘business transformation’
programme.
Such a transformation involves people, processes (business processes) and technology
(software and technical infrastructure) with each area being addressed throughout the
Programme.
It is important that the Programme is not seen as a ‘catch-all’ or a ‘universal panacea’ within
the Council and, while its scope constitutes a large part of the Council’s business, the
Programme itself is not the business.
The Programme must clearly be seen as being owned by the business, even if it is enabled
through the wide-spread use of IT. The business – and Business Unit managers in particular
– needs to be equipped to take responsibility for the ownership of the Programme.
2.2
Expectations
A key and on-going challenge for the Programme is the setting and managing of user
expectations. There are a number of important considerations in this area which include:
Breadth and depth of engagement. This covers overall engagement across the Council
as a whole as well as more in-depth engagement with the various Business Units within
the Council.
Timing and level of engagement. The timing and level of engagement is also a continual
balancing act, requiring regular monitoring and management. It is always a constant
juggle between ‘too much, too soon’ or ‘too little, too late’. Interaction with the various
Business Units also needs to be timed to maximise engagement – ‘providing the right
information at the right time’ – with clear statements of what each Business Unit is
expected to do or provide.
Implementation timeframe. It is likely that the chosen solution may take up to three
years before it is fully implemented. How it will be implemented has yet to be
determined, and managing expectations around when the functionality required to
support a specific Business Unit will be delivered is an important consideration.
Maintaining the current change freeze (which has already been in place since the
beginning of December 2013) will also become increasingly challenging as time passes
and demand for change increases.
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System lifespan. The overall lifespan of the chosen solution could be between ten to
fifteen years. In this context, it is important to consider the Council’s long-term
positioning and likely service delivery requirements (i.e. ‘where we want to be both now
and in the future’). A number of those interviewed noted that while the Council has a
clear external focus as reflected in the long-term plan, it does not have a similar long-
term focus internally.
Understanding of the Programme. While there is a common level of understanding and
a high degree of support for the Programme within the Steering Committee, this begins
to dissipate as you move out into the wider organisation. The level of understanding
and support at Tier 3 and below was questioned by a number of people. In many
instances, this will simply be due to the fact that the Programme has had no immediate
impact on their respective Business Units (i.e. it hasn’t placed any significant demands
on them as yet). In some cases the response is one of ambivalence or cynicism.
Understanding implications of proposed approach. There needs to be a common and
consistent understanding of the implications of the Programme Manifesto (see Appendix
1), and a commitment to the principles it contains. In essence, many of these principles
potentially require people to ‘give-up’ something (whether it is functionality or usability)
for the ‘greater good’ of the Council as a whole. These implications currently appear to
be largely untested. Likewise, concepts such as a ‘single customer view’ need to be
explored in terms of exactly what this means both for customers and the Council
(bearing in mind that no actual ‘customers’ have been consulted at this point) and what
impact it will have. Many of these principles are also inter-related, and so cannot be
considered in isolation – although they are not necessarily equal to one another (see
section on Trade-offs below).
Enablement of best practice. Another important assumption underpinning the
Programme is that generic best practice will be ‘encapsulated’ within the chosen
solution. The implementation needs to take into account how this will be ‘released’ and
its value to the Council maximised. Linked to this is the Council’s own willingness to
compromise and change in order for this to be realised.
As a consequence of these considerations, support for the Programme is considered to be
relatively ‘soft’ given the overall implementation timeframe and the lack of any real
commitment being required at this time.
2.3
Trade-offs
Following on from a more well-developed understanding of the implications of the proposed
approach (see section on Expectations above), a robust discussion needs to occur around
the various ‘trade-offs’ likely to be required as part of this Programme. These trade-offs
include (but are not limited to):
Short-term requirements vs. long-term positioning
Individual vs. collective benefits
Revenue generation vs. cost minimisation activities
‘Nice to have’ vs. ‘must have’ features and their associated costs.
In light of this discussion, consideration also needs to be given to the priority and order of
implementing the various modules available in the chosen solution.
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2.4
Request for Proposal
The Council has gone to the market with a comprehensive and well-structured Request for
Proposal (RFP).
All those interviewed for this review consider that their requirements have been
appropriately captured, although there is variability in the level of detail provided and the
more granular requirements that these may comprise. However, it is considered that the
requirements are sufficient to evaluate any proposals within the context of selecting a
‘package-based’ solution.
The probity of the tendering process is being overseen by the Council’s own Risk Assurance
group.
It is important to note that this review does not cover any activities or decisions leading up
to the issuing of the RFP.
2.5
Evaluation
Front-line staff – ‘the people doing the work’ – must continue to be actively involved in the
selection of the preferred solution including reference checking and site visits. This will help
to ensure good ‘grass-roots’ feedback on the solutions the Council is considering.
It is also highly desirable that a significant proportion of the people who were involved in
documenting the requirements are also involved in the evaluation, to ensure that their
knowledge and understanding of what is required is appropriately captured in the vendors’
responses and reflected in the evaluation.
2.6
Selection
The selection of the preferred solution will be a major milestone in the Programme. This
selection will enable a number of currently unresolved issues to be addressed. These
include (but are not limited to):
The overall ‘context’ for the implementation
The associated costs and benefits associated with the solution
An assessment of the level of configuration or business process change likely to be
required.
It is important to recognise that the Council is also selecting a long-term implementation
partner, so there needs to be a strong sense of shared values and an associated commitment
to customer service and product development.
2.7
Implementation
Given the likely size of the solution, it is important that the Council thinks carefully about
‘how it eats this elephant’. While this is done ‘one bite at a time’, it is also important to
‘chew and swallow’ before moving onto the next mouthful (i.e. to adopt an iterative and
incremental approach).
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The order and sequencing of modules may also be driven by a number of factors including
(but not limited to):
Group or asset class
Customer impact
Business criticality and preparedness
Financial impact (i.e. cost or revenue implications)
Probability of success (i.e. quick wins vs. long-term returns)
Relative stability during the implementation period.
Changes to business processes – in particular the opportunity for rationalisation and
simplification – should be addressed before implementation commences. The approach to
testing and data migration also requires careful consideration.
The overall implementation approach adopted will ultimately determine the success of the
Programme.
2.8
Business Case
A comprehensive business case needs to be developed in parallel with the current
evaluation process.
The business case needs to be shaped and informed by the discussion required around
expectations and trade-offs (the implementation of a ‘vanilla solution’, for example, should
lead to easier upgrades in future with a lower cost of ownership and an improved ability to
access new functionality).
In addition to the costs associated with implementing the chosen solution, it also needs to
clearly identify the benefits expected to be achieved through its implementation. These
benefits and the accountability for their management and realisation need to be accepted
by the relevant Business Units within the Council. This includes the ‘capturing of savings’
that would otherwise be absorbed or spent elsewhere.
Typically, programmes of this nature tend to over-state the benefits and under-estimate the
risks associated with their implementation. It is expected that the Council will undertake a
comprehensive analysis of these factors and will clearly identify the risks and the
assumptions that have been made in developing the business case.
2.9
Programme Delivery
2.9.1 Sponsorship
With the Chief Executive Officer as Programme Sponsor there is a strong sense of ownership
not only of the programme itself but of the organisational impact that it will have as a result.
Effective sponsorship is one of the key elements to the success of a programme of this size
and complexity.
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As Gartner notes, “An executive business sponsor must be personally invested and visibly
committed to the success of any business initiative that involves significant organisational
and process changes produced by the adoption of new IT solutions or services … they must
specifically allocate time [and staff resources] to the initiative or risk its failure by
underestimating their available time or overestimating their abilities to proceed.”1.
2.9.2 Governance
While the current governance structure is appropriate, following the selection of the
preferred solution, consideration could be given to establishing an operational advisory
group (comprising key Business Unit managers) to monitor and advise the Steering Group
and the Programme team on the operational aspects of the Programme.
2.9.3 Management
Management of the Programme needs to develop in step with its increasing growth and
complexity.
While it may have been appropriate for the Programme Manager to also be the Project
Manager for the Procurement Project, any subsequent projects within the Programme need
to be resourced separately.
The Programme Manager needs to be able to focus on the needs of the Programme as a
whole, with a significant proportion of time being dedicated to meeting and working with
the various Business Units across the Council to ensure the successful implementation of the
chosen solution.
It is noted that there is no Programme Management Office (PMO) within the Council to
provide advice and assistance to the Programme Manager in the management of the
Programme.
2.9.4 Resourcing
As the Programme gathers momentum and more resourcing is required, it is important to
look for this internally wherever possible (even if it requires back-filling to release people to
work on the Programme). This will assist both with organisational buy-in and in retaining
knowledge and expertise when transitioning to the chosen solution.
The expectation that Programme activities can be accommodated on top of operational
(BAU) activities is not sustainable in the long-term, and is likely to be to the detriment of
both (the same is often true of part-time resourcing).
2.9.5 Reporting
Current reporting is lightweight and concise – ‘short and sharp’ – but is appropriate for this
stage of the Programme. This will need to become more detailed as the Programme
progresses and the range of activities to be managed more complex.
1 “Where the Buck Really Stops for Government IT Project Failure”, Gartner, 18 March 2014
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It is not always easy to identify changes during the reporting period (e.g. increase or
decrease in individual risks and issues) and this needs to be made more readily apparent.
Consideration should also be given to maintaining a ‘decision log’ to record the decisions
made during the course of the Programme.
2.10 Change Management
As already noted, and as acknowledged in the Programme Manifesto, this is an
organisational change management programme enabled by IT. It is therefore important that
any business change arising from this Programme is actively owned and ‘fronted’ by the
business.
A number of other change-related issues have also been noted:
Channels. The Programme needs to use a range of communication channels to
communicate with its various audiences, and this is reflected in the ‘Communications
Log’ that has been developed. No one ‘medium’ can be relied on to reach everyone and,
likewise, a key consideration is what to communicate and when (i.e. the ‘message’).
Culture. There is a significant cultural change in moving from ‘individual fiefdoms’2 with
highly customised point solutions to a generic solution which is expected to meet the
needs of the Council as a whole. This needs to be reflected in the behaviours, decisions
and actions taken in relation to the Programme.
Language. Wherever possible, the Programme needs to use plain English and avoid the
use of jargon and terminology the business is likely to be unfamiliar with. The focus
needs to be on value rather than volume.
Resourcing. There is an immediate need for additional dedicated change management
resources. At present, there is a mix of communications and change management skills
within the team, and these are likely to become discrete roles over time.
2 A territory or sphere of operation controlled by a particular person or group.
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3 Recommendations
The following actions are recommended following this review:
No.
Recommendation
Section Council Comment
1
Regularly review the effectiveness of
2.2
communication (message, medium and
2.10
timing) in helping to set and manage
user expectations.
2
Ensure that Council management fully
2.2
understands and accepts the
implications of proposed approach as
reflected in the Programme Manifesto
and other key concepts underpinning
the implementation of the Programme
(this may be done as part of an impact
assessment or facilitated workshop).
3
Ensure that Council management fully
2.3
understands and accepts the ‘trade-
offs’ the Council will be required to
make to successfully implement the
Programme.
4
Ensure the evaluation continues to
2.5
involve an appropriate cross-section of
front-line staff and those involved in
documenting the original
requirements.
5
Ensure that a comprehensive business
2.8
case is developed which clearly
identifies the approach, costs, benefits,
assumptions and risks associated with
the implementation of the preferred
solution, together with clear
responsibilities for benefits realisation.
6
Ensure the Programme is adequately
2.9.3
resourced in line with increasing
2.9.4
growth and complexity.
2.10
7
Enhance reporting as Programme
2.9.5
progresses and the range of activities
increase.
8
Review Change Management Plan to
2.10
ensure it appropriately addresses the
issues noted in this report.
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4 Next Review
The next review will focus on:
Solution evaluation
Implementation planning, and
Business case development.
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Appendix 1 – Programme Manifesto
The Programme Manifesto was created to act as a ‘guide’ for the Programme:
The Programme seeks to deliver a configurable solution, not a customised solution.
The Programme and its deliverables will not be over-elaborated – fit for purpose is the
target.
We will compromise and / or constrain for the greater good – a solution may be
implemented if it provides a greater overall fit for Council, despite any individual
function/process solution shortcoming.
We will attain and maintain Tier 3 management commitment and support, including
signoff on RFP requirements.
This is a business change programme, with IT / IM change enabling.
The focus / weighting of targeted benefits, and therefore an aid to decision making, is as
follows:
o 40% - customer service
o 30% - IT / IM cost reduction
o 20% - increased business efficiency
o 10% - positioning for regional opportunities.
During the procurement phase, vendor responses will not be constrained by cost.
The Programme considers the functions of management of Customer, Property, Land
and Green and Built Assets management as an indivisible package in the vendor solution
offering.
The vendor solution offerings for the functions of HR, Payroll and Finance can be
considered as discrete solutions.
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