Complex MIS IT Projects in Government Case Study

8/10/2019 Complex MIS IT Projects in Government Case Study

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Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | LipaTelephone Numbers: +63 43 723 1446 | 980 0041Website: www.ub.edu.ph

Complex MIS IT Projects in Government: A Case Study

I. Introduction

This study is produced for the Local Government by Management InformationSystem Department, studying for an E-Government and Innovation. The team is composedof three members with complementary skills, and two supervisors from managementscience and computing science. This case study aims to explore the critical success factorsin complex and successful IT projects. In addition, the sources of complexity in theseprojects will be analyzed in order to understand how complexity is managed and reduced inorder to achieve project success. To do so, we will gather relevant concepts and categoriesfrom various literatures, and compare and contrast this with two cases of successful ITprojects, in order to produce general recommendations for managing complexity in ITprojects.

The sources of complexity in IT projects will be discussed in the introduction section.Research methodology and research questions are outlined in part I. Part II of the reportdescribes the two cases, including the company and industry backgrounds. Sources ofcomplexity in these two specific cases will be analyzed, as well as the similarities anddifferences between them. Part III discusses the general critical success factors for ITprojects, based on secondary research. The findings from the two cases are discussed inpart IV, which includes four main topics which address complexity: change management,stakeholder management, risk management and communications management. Lastly,general recommendations for IT projects are provided, based on the research results.

According to research from the Royal Academy of Engineering and the BritishComputer Society (2004), only 16% of IT projects are considered truly successful. Studyingthe factors and processes that contribute to complexity on IT projects and their managementis important in understanding why IT projects fail, and how the management of complexityincreases the chances of success. While an important source of complexity in IT projects istechnology, the key source of complexity is the scope of the project set by management, thevarious social, economic and technical factors that then influence the success or failure inmeeting the project objectives, and the various social and technical strategies employed bythe project team to detect and manage these internal and external influences.

The external sources that need to be detected and considered in the IT project aredepicted in Figure 1. The sources of complexity for an IT project are based in the projectenvironment. Many social, political and economic issues in both the projects internal andexternal environment, in addition to technology, need to be considered.


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Fig. 1: Complexity Model

An IT project is conceived and conducted within a large and uncertain environment,which can produce considerable complexity for the project planners and participants whenthe relationships among these various factors are numerous, interactive, unknown,unpredictable and ambiguous. In various environments, different issues contribute to thecomplexity of the project, but even in the same environment, particular project goals andoutcomes will be affected by numerous and interacting factors. It is the anticipation,detection, evaluation and consideration of what role these factors play in the success andfailure of the project that increases project success. The sources of these environmentalinfluences are to be considered next, using the PESTEL framework: political, economical,social, technological, environmental and legal.

Macro-environment

For different IT projects, the ranking of importance for the five issues in the macro-environment differ (political, economical, social, technical, environmental, and legal).Considering the macro-environment around an IT project, the technical issues bring a largesource of uncertainty and complexity to the project. An important part of this complexity isthe pace of change in the technical environment which can quickly render current businessand technical plans obsolete, as new technologies present ever-changing social andbusiness possibilities.

Micro-environment

Clients of IT projects are included in the micro-environment. As a source ofcomplexity, determining a stable set of client requirements is an important issue. Due to thecomplex technical issues that may be present in the project, the clients may not fullyunderstand what they want. Their requirements may be unrealistic, unachievable, and oftenchange, because of the uncertain technical issues or capabilities, as well as an uncertain

Macro - Environment

Micro - Environment

Organizational Environment

Project Environment


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business environment and an infinite number of business possibilities that could arise from agiven technical system. Developing, constricting, understanding and communicating suchrequirements is a challenge for the whole project team, especially in setting a reasonable

project scope with the users input, and deciding where and how particular users will beinvolved in the setting of the scope and system requirements. Many projects fail due toflaws in the elucidation of requirements, others fail because the requirements have becomeobsolete by the time the project is delivered (The Challenges of Complex IT Projects).

Within some industries, the client is the customer of project deliverables, and theirneeds are difficult to predict, in particular when IT projects are meant to develop systemsthat deliver new products and services. The risk is high because it is hard to know whetherthe innovative product or service will be accepted and used by the end-user clients. In thisscenario the project needs to find a market of business or retail consumers that demands asolution that could be created from the IT.

Complexity is also increased and transformed, to a large extent, through industrialdynamics such as competitive rivals, and the IT services they are offering now and in thefuture. It is difficult, complex and uncertain for a project manager to recognize and predictthe nature of these competitive forces, and how they will affect the projects current andfuture success. Thus, in addition to technology that is rapidly developing, the application ofthese technologies is constantly changing. So complexity is increased by a search to findand sustain first-mover advantages from new technology and revised business practices,which remain valuable and protected from competitors.


Often, IT projects start with an innovative idea, but the unpredictable nature of thecost and return on investment makes it difficult for the IT project team to justify and gainsupport from senior management. In some companies, the organizational environment maydiscourage business-process and innovation, by failing to provide the necessary resourcesto support the error-prone exploration and development of new information systems.

In addition to these project-related factors, establishing an IT project within anorganization will cause uncertainty and changes in the organizational environment. This istrue whether the IT system is to be used by either the company itself (internally) or by theircustomers (externally). Change management is required in the projects post-implementation stage. A source of additional complexity lies with the potential conflictsbetween the internal and the organizational environment, including cultural, businessstrategy, and structural and historical conflicts, to name only a few salient areas. To preventor resolve such conflicts, the various stakeholders should fully understand each othersstrategy objectives through two-way communication, in order to achieve an agreement onhow to implement the technology and systems, and the resulting benefits and costs theyaccrue to each party.


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Project Internal Environment

An important source of complexity and its reduction is the project environment.

Project complexity can increase during the translation of business requirements intotechnical specifications. This involves identifying and eliminating any discrepancies ininterpretation, which may be difficult until systems are developed and implemented. At laterproject development stages, core changes can be critical and potentially devastating to theproject, leading to scope creep or out-of-control projects. The project teams, as well as theproject manager need to have comprehensive ability and skills, while being able to talkacross functions, to both technical and managerial groups. Unlike other projects, IT projectprogress is often invisible and the scopes are hard to control. This makes the monitoringand controlling process complex.

II. Product

When they examine how the private enterprise sector deals with inefficiencies,governments find that more often than not, the solution is operationally based technologyapplications. The efficiency and productivity gains enabled by technology such as high-speed wireless communications networks, mobile connectivity, rugged, handheld computingdevices with operationally focused applications, two-way radios, web-enabled smart phonesand PDAs, handheld scanners and more are substantial and sustainable. The fact is, alot of the efficiencies wireless technology provides are ones that couldnt be realized simplyby hiring more workers.

According to recent Motorola research, when asked to identify the key benefitsrealized through their utilization of mobile and wireless applications, 43 percent of Americanenterprise executives surveyed said increased employee efficiency and productivity was themost important. Additional benefits sited by survey recipients: 21 percent indicated reducedlabor costs due to automated processes, 21 percent noted increased inventory and assetaccuracy; 17 percent identified improved customer satisfaction, and 17 percent saidincreased revenues. Theyre accomplishing their goals by using wireless solutions tostreamline business processes. As they cope with having to do more with less, state andlocal governments are understandably interested in seeing similar improvements in theirorganizations.

How exactly does a government agency go about thinking and acting more like anenterprise to counteract budget and workforce shortfalls? Governments have to becomemore bottom-line oriented, especially as budgets continue to tighten, says Terry. Theyneed to start focusing on business process improvement to bring about increases inefficiencies, productivity and ROI [Return on Investment]. As cities and counties operatemore like businesses, they are beginning to take a closer look at the inefficiencies in theircurrent processesand at how much money these inefficiencies are costing them.

Theyre finding mobile workers driving back and forth from the office to job sitesmultiple times a day because they need to access the government database and work


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crews piling up idle time while waiting for authorizations. Theyre finding time wasted asworkers fill out paperwork by hand, time lost by a second person trying to interpret what hasbeen written, which often results in entry errors. In addition, theyre finding financial

inefficiencies such as skyrocketing telephone bills and rising fuel costs resulting from toomany truck rolls. Theyre also finding they can no longer afford the escalating costs of theseinefficiencies.

Virtually any process that involves a field service worker with a clipboard and paperform can be made more efficient. The time it takes to fill out forms limits the number of tasksthat can be performed in a day, significantly lowering productivity. In the office, data entrypersonnel often struggle to interpret the workers handwriting, further reducing efficiency andheightening the likelihood of inaccuracies.

GIS Technolog ical Issues

In terms of the technological issues, the GIS system contains a central serviceimplemented on AIX Unix server database and application server with TCP/IP interfacesand the UK 2nd tier supply infrastructure (ELEXON). The central system is comprised of aweb interface and an Oracle database built around a Distributed Computing Infrastructure(DCI). This can integrate the central system and allow online payment to be identified by thepayment agent and the message is processed by the SMS service provider system. Anapache web server was used to deliver user interfaces, and an SQL Work bench databasewas used to provide the database. A Tomcat server container is driven by SQL and theSTRUTS framework, using SQL Server Pages and cascading style sheets for thepresentation layer. The project also developed a Prepayment Metering InfrastructureProvider (PPMIP) application, which allows suppliers to interact with their meters in real-time.

Complexity of the Project

This Complexity Model has been devised by the research team to illustrate why thecase studies in this report could be regarded as complex by showing the illustrating thefactors and their interactions in their respective IT environments. The elements from thismodel show the sources of complexity found in these cases. This is a specific model to ourfindings, drawing upon models in the literature, such as Porters five forces model and thePESTEL framework. We also will explain how complexity can be managed by the carefulmanagement of the project risks associated with these environmental factors, and the micro-environmental strategies used to mitigate risk.


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Fig. 2: Complexity Model for the Project

Macro-environment

This environment is complex because it is highly influenced by, and requires carefulbalancing of, political, economic, social, technological, environmental and legal factors(PESTEL). These factors are by their nature, largely out of the control of the project leadersor initiators and are discussed in more detail below. However, decisions about project scopewill dictate whether, and to what extent, specific factors will play a role in increasing orreducing the factor complexity of a project.

In both cases, the scope and ambition of the projects included a complex array ofinteracting macro-environmental factors. At GIS system the data is accurate and complex,as it involves client needs and solutions that are continuously changing, thus making it riskythat a specific IT-based product or service will eventually and consistently meet theirbusiness needs. However, despite a traditional business service and industry, thecomplexity results from implementing an innovative, highly technical solution into atransformed approach to the service.

Political

The government can have a massive impact on IT projects. They may make it harderor easier for new companies to start up with an IT concept or idea for a project. Taxes onbusiness and financial incentives to encourage entrepreneurship have an impact on whetheror not an IT project may be regarded as a viable business option.

Macro - Environment

Micro - Environment


Project Environment

Economic Influences

Political InfluencesPolitical

Com etitorsExisting

Com etitors

Project ScopeClientRequirements

(new orchanging) Threat of new

entrants

BargainingPower of

Buyers

BargainingPower of

Suppliers Threat ofSubstitution

Legal Influences

EnvironmentalInfluences

TechnologicalInfluences


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At MiS political forces have had a substantial impact on the project. The currentsituation in the Philippines is of an impending energy crisis with political ramifications.Energy prices are increasing, leading to the risk of fuel poverty, which the government is

obviously aiming to curtail by 2010, making energy high on the political agenda.It is fair to suggest, however that although these macro factors may be important in

determining the complexity of IT projects, individual factors may vary in importance betweenprojects. Political factors were not as important as at GIS system because the courierindustry is not on the political agenda.

Economic

Economic factors may affect the willingness of customers to buy the products orservices produced by a new information technology or system, and may in-fact createresistance to changes in times of economic uncertainty. At GIS the economic climate maybe important if it affects the demand for prepay meters. This factor adds to the complexity ofthe project, because the various needs of different customers have an influence on therequired flexibility of the system. In response, it has produced a meter that can be used forprepay or contract customers.

Technical

Technical issues give rise to uncertainty in IT projects, especially those utilizinginnovative technology and practices using technology. This is because technology and itsuse are rapidly changing, and a technical or competitive mistake can produce severefinancial losses. LogicaCMG have found that there have been some cost overruns due tothe unpredictable and rising costs associated with technology. This includes findingsolutions to problems that were found during the development of the project, which could nothave predicted at the outset, and were thus not assigned a level of risk in the project plan.However, their response to emerging and unexpected complexity was handled by spendingmore on technology in the early stages which helped ensure success in the longer termbecause they built the project using the most up-to-ate technologies available.

Now that government is in the post-implementation stage of the project, they arefaced with continuing complexity and uncertainty, and so they need to make carefulconsiderations about which technologies to invest in and which to avoid at this time.Because both companies are striving to obtain first-mover advantage they have to remaininnovative and adaptive towards new technologies and their possible applications, in orderto ensure that this advantage can be sustained. This also gives rise to uncertainty, becausetheir innovative use of technology can now be imitated by others, and future advances intheir own use of technology cannot depend on learning or copying from others.

Environmental

Environmental issues may be of a concern at Local Government. If there areadditional taxes on fuel, increased parking charges/fines or initiatives to reduce the number


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of motor vehicles on the road, they may be encouraged to increase their use of bicycles oradjust their delivery approaches to pick up more orders at the same time. This adds to thecomplexity of this IT project as the automated dispatch system would be programmed to

allocate the most appropriate courier, not necessarily the most environmentally oreconomically suitable.

LegalLegal issues can be a factor contributing to complexity in IT environments. There

may be government legislation that affects the project output, such as specificationguidelines. Both companies are able to apply for patent protection for the design of theirproduct that was created through their project. If patents are registered then it may reducecomplexity by reducing the threat of new entrants in the macro environment.

Micro-environment

In the micro-environment are the players who have control or can influence theproject, including the client and the industry.

Client - The project and the project team need to cope with changing client requirements,especially given that the client may be uncertain about their requirements given the lack ofawareness of technology and its novel applications. Therefore, it is often difficult to specifythe client requirements at the outset, and this often leads to the changes in the projectscope as client requirements emerge and change. Additionally, client requirements maychange due to issues within the macro environment, another area that is beyond the controlof the project team.

At Government complexity is high because there are a numerous possible clients for thisprojects whose needs must be considered and generalized into a flexible product. Suchstakeholders include the end users who have the Smart Meter in their homes, in addition tothe energy companies who would buy the meters and use the software to monitor themeters and use the enhanced services offered by LogicaCMG. If the end usersrequirements were not met by the product-service, or the energy companies feel they wontbe met, both the company and the end users would never implement the product, or theywould demand that the meter be taken out of their home and replaced with a differentmeter, possibly reverting back to token systems. The meter companies on the other handwould have the power to buy meters from a rival producer.

This complexity of purpose and use increases the possibility that energy companiesmay set unreasonable demands for the functionality of the meter. Scope creep could thenoccur before or after as the project leader attempts to anticipate or respond to energycompany and end user requests.

Industry IT projects may strive to be first movers, but the definition of a first-mover withinan industry is difficult to define. Both companies studied are first movers with theircombination of technologies and the way they have brought such technological innovationinto traditional industries. On the other hand, they are not first movers in terms of being the


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first to courier and offer energy meters. Within the industry, it may be difficult to develop ormaintain competitive advantages when second movers start to imitate significant first-moverstrategies using software and technology. This produces economic uncertainty, which can

be handled only by constant adaptation and innovation with current or new technology.Organizational Environment

Under more control and therefore both a source of increased and reducedcomplexity, is the organizational environment. The organizational environment and theimpact this has on complexity is an important consideration. At MiS Department, theorganizational environment of transparent walls and people working together mirrors theimage that the company wishes to project to their customers, that of transparency andhonesty within the courier industry. At GIS they use hot-desking across multiple sites.Project team members may be geographically distant, but still keep in regular contact byusing various methods of communication. As all team members are passionate about theproject and want it to be completed to the highest quality possible, there is trust instilled onevery member to complete allocated tasks and to work to the benefit of the project. At theheart of this trust is communication. Both projects studied focus heavily on communicationbetween all of the project stakeholders and this helps create an organizational environmentunder which the development of the project goals and objectives could flourish.

Project Environment

Complexity can also arise if there are conflicts between the organizationalenvironment (the norms within the project between the team) and the project environment.Within the organizational environment, complex IT projects may find it more difficult to gainsupport, either financial or other resources from the senior management team. This wouldbe especially prevalent for projects such as at GIS that necessitated a longer projectnurturing period, from conceptualization to the time at which the project output can bepresented to the market and start to make money. The complexity of the IT project can bereduced if, as is the case in these two examples, the senior management teams haveindustry or technical experience, or other experiences that they can bring to simplifyingcomplexity and reducing ambiguity.

Complexity within the project environment can occur because the project is makingextensive use of new technology and the obvious uncertainty and trial and error that occurwithin such IT environments. This may increased the difficulty of project leaders to securefunding for the project, as being first-mover is associated with a higher level of risk thanwhen a project has predecessors. Because of the nature of an IT project, funding wouldneed to be secured on the concept of the project, which may not have an accurate orreliable prediction of return on investment. As has been confirmed with this case study, thismay make it more difficult to obtain outside (venture capital) funding when compared to amore tangible investment option. Costs and benefits may be difficult to predict consideringthat there are no competitors to provide an estimate of these, and being a first moverexposes the company to the majority of the uncertainty and research-related costs tomanage this complexity. Benefits may be more prevalent in the longer term, once the IT


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project has overcome initial issues. For example, MiSD has overcome their initial issues andnow are benefiting from the scalability of the IT project to make money from their initial andcurrently reduced funding of the project. Relevant to influencing potential funding options

may be whether the project was to be market driven, or driven by the research and technicalskill of the company. If the latter was the scenario, it may be difficult to market the endproduct of the project due to it being previously unknown to them.

Overall, complexity arises from managing all of the issues discussed above withinthe environments identified in the model. It is complex because relationships between all ofthe actors need to be nurtured and managed. This involves effective communicationbetween all parties, not just within the individual zones in the model but between zones. Atboth GIS and MiSD the project team needed to communicate with heterogeneous clients inorder to discover their requirements within the micro environment zone. Complexity does notstop when the software has been developed for example, it remains (albeit in a modifiedform) after post-implementation as technology and business environments change. At MiSDeven though the software has been developed and implemented, micro changes continue tobe made to the functionality of the software to ensure that is offers maximum benefit. Thesechanges arise from feedback from the users, both staff internal to the organization andfuture customers external to the organization. There is scope for MiSD to sell their system toother companies by offering franchise opportunities, which would provide another method ofobtaining feedback to initiate change. However, rather than this being scope creep, this isan adaptive responsive to genuine needs to sustain their innovative and competitivemarketing position.

Similarities and Differences of the Projects

Comparing an overview of the two projects helps to identify common success factorsand the challenges of complex IT projects. The similarities and differences of the twoprojects are discussed below:Similarities

MiSD and GIS are both first movers of new combinations of existing technologies within theirrespective industries, arising from innovative ideas. They combined the existingtechnologies to create an innovative product and/or service to their customers to solve anexisting need and market. MiSD new prepayment solution combined SMS messaging andprepayments metering to enable energy suppliers to cut operational costs gather informationeasier and have more control over energy service provision. The end customer who has themeter in their home benefits from added convenience of using the new Smart Meter. GISuses interactive mapping technology, to make them the first courier company who allowclients to zoom, pan and track a courier with their parcel on a street-level geo map in realtime.

Project had a small project team, LogicaCMG had 10 people involved in the projectand MiSD had 15 people who contributed to the development of the project. All teammembers had a shared vision and were passionate about their products and servicesthrough effective communication. They all have extensive and a full range of skill sets and


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experience, and open communication was embedded in both projects. In addition, bothproject team members skills were compared against Business Change sub-category andSystems Development Industry Model in the BCS SFIAplus framework. They both have

project management, web site specialisms and business change skills in the teams fordevelopment projects.

GIS and MiSD both had good planning and research in the pre-implementationstage; they all had deliverable milestones to aim for, and broke the project down into smallerstages and focused on short-term deadlines. Meanwhile, they were willing and flexible tomake changes when learning occurred. Both project teams understood the importance ofmaking business changes because of macro environmental changes.

Differences

GIS is a large international organization, and has a virtual team created from internalresources being based in four places: Leatherhead, Manchester, Edinburgh and London.Communication mainly occurs through email and telephone, with regular update conferencecalls. The project was able to draw upon more expertise if needed. MiSD on the other handwas initiated as a new company by setting up a new project and team members werebrought in to the company during different stages. All team members are located in theirLondon office, where full-time face-to-face communication is easy to conduct andencouraged.

III. Process

At every level of government, meeting constituents public services expectations hasalways been a challengeand todays financial realities arent making it any easier. Thetruth is, theres not a government agency or department that isnt feeling the impact of thesluggish economy. Budgets are down. Workforces are shrinking. But the workload hasntdecreased and demand for citizen services isnt slowing down. On the contrary, because ofthe economy citizens are feeling the pinch and demanding better value for their tax dollars.How are governments reacting to these new realities? Some may look at the situation assomething they cant really do much about and simply try to get by. But a growing number ofcommunities are looking at it much differently. What theyre seeing is an opportunity to makechanges that help them improve efficiency, productivity, return on investment andcommunity responsiveness and service. How? By thinking of their operations not asgovernment but as an enterprise.

This line of thinking is coming not a moment too soon, as government agencies arealready dealing with serious shortfalls in revenues and resources. It doesnt matter whetherits at the federal, state, province, or local level, the issues are virtually the same. The BigReset, a study issued in February 2010, by the National Governors Association for BestPractices reports, The states are facing a protracted budget crisis like none seen in the last30 years. [This] has prompted hard choices on the best way to cut to the bone while doingthe least harmto quality of life. How serious are these shortfalls? The report continues,


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Infiscal 2009 general fund expenditures declined 3.4 percent from fiscal 2008 levels andenacted budgets for fiscal 2010 show a 5.4 percent decrease from 2009.

Government leaders in communities of all sizes are changing their perspective andbeginning to manage their operations as if they were managing an integrated enterprise.Many of the enterprise-type solutions theyre investigating are focused on new technologiesthat enable information sharing and ubiquitous network access to substantially improveefficiency and productivity. Its a significant cultural shift and its gaining momentum.

Government agencies are automating data capture and data entry with mobileconnectivity and easy-to-use handheld devices. Handheld mobile computers with scanningcapabilities streamline data capture and electronic smart forms enable highly efficientworkflow automation. And because the data is captured directly into the municipal database,accurate, up-to-to-date information can be shared.

Wireless connectivity is key to improving the efficiency of the mobile workforce,including activities such as inspections, maintenance and customer service. Operationsmanagers are able to better coordinate functions, improving productivity and minimizing theeffect of reduced workforces. With real-time mobile data connectivity, the field force is ableto remain on job sites while instantly accessing, downloading and even printing theinformation they need.

Virtually every government department or special district has thousands of assetsranging from computers to office furniture to tools, snowplows, tractors, vehicles and more.In too many cases, a municipality or a county has virtually no record of where many of theseassets are located or what condition they are in.

Reduced budgets are forcing agencies to maximize asset usage and extend the lifeof the asset. Software applications provide real-time tracking and management of assetsthrough handheld computing devices, bar code scanners, RFID technology. This electronicrecord enables managers to always be aware of an assets condition.

Managing and monitoring critical infrastructure to guard against cyber attacks canhelp keep government agencies running smoothly with the confidence critical informationand networks are safe. Advanced network security solutions can identify security gaps andsafeguard crucial and sensitive government and citizen records. Sensors and integratedvideo systems can provide round the clock, real-time monitoring of critical infrastructureassets and locations such as high-crime areas.

Many government agencies are controlling costs by connecting two or more facilitiesor locations as well as hard-to-reach rural areas with cost-efficient point-to-point orpoint-to-multipoint wireless networks rather than go to the expense and disruption ofextending or installing a wired solution. In addition, many use wireless networks toimplement VoIP (Voice over Internet Protocol) telephone networks for departmentcommunications, reducing or eliminating monthly telephony expenses.The Bottom Line


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Government agencies are seeing a real ROI benefit from the implementation of wirelesscommunications networks, devices, applications and services. Agencies are seeing costsavings not only in hard dollars but in operational efficiency, high quality output and work

force productivity, with solutions that pay for themselves in a relatively short time, anywherefrom several months to a few short years.

System workers receive updated assignments and complete their work orders in real-timewhile remaining in the field, maximizing productivity. Assets can be tracked, maintained andmanaged effectively, providing a clear understanding of available resources. Video systemsare easily managed, correlated and acted upon for improved real-time decision making.Enhanced and extended wireless networks deliver voice, narrowband and broadband datawhenever and wherever its needed throughout the government enterprise.

IV. Location

The IT infrastructures significance to the country has gained visibility in the recentyears due to cyber attacks and rapid growth in identity theft and financial frauds. Theseevents have made it increasingly clear that the security of the IT infrastructure has becomea key strategic interest to the Government. Although the industry now making investments insecurity-related infrastructure, their actions are directed primarily at short-term efforts drivenby market demands to address immediate security problems.

The Government has a different but equally important role to play in cyber securityassurance in the form of long-term strategies. In this direction, the deliberations of theNational Information Board (NIB), National Security Council (NSC) have stressed theimportance of a national strategy on cyber security, development of national capabilities forensuring adequate protection of critical information infrastructures including rapid responseand remediation to security incidents, long term investments in infrastructure facilities,capacity building and R&D. Governments responsibilities in long-term investment andfundamental research will enable development of new concepts, technologies, infrastructureprototypes, and trained personnel needed to spur on next-generation security solutions.

Government leadership catalyzes activities of strategic importance to the Nation. Incyber security assurance, such leadership can energize a broad collaboration with private-sector partners and stakeholders to generate fundamental technological advances in thesecurity of the Nations IT infrastructure. First, in support of national and economic security,the Government should identify the most dangerous classes of cyber security assurancethreats to the Nation, the most critical IT infrastructure vulnerabilities, and the most difficultcyber security assurance problems. Second, the Government can use these findings todevelop and implement a coordinated R&D effort focused on the key research needs thatcan only be addressed with such leadership. While these needs will evolve over time, thisCyber Security Strategy provides a starting point for such an effort.

Public-private partnership is a key component of Cyber Security Strategy. Thesepartnerships can usefully confront coordination problems. They can significantly enhanceinformation exchange and cooperation. Public-private engagement will take a variety of


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forms and will address awareness, training, technological improvements, vulnerabilityremediation, and recovery operations.

V. Layout

Beginning with their introduction into organizational life in the 1950s, informationtechnologies (IT) were thought to raise delegation issues, not leadership issues. Publicsector and other leaders were encouraged to delegate IT to "the experts"--to specialized ITstaff and vendors. Computing and telecommunications weren't seen as requiring much inthe way of political problem solving or leadership. Nor were they seen as offering solutionsto important political or policy problems. As a result, senior general managers wereminimally involved in technology matters, and technology experts were minimally involved inorganizational strategy or operations.

We've come a long way since the 1950s. The technologies are different and theapplications are different. But to what extent is "management by delegation" still the rule forIT issues, and with what impacts on government and the larger society? What, if anything,could and should be done?

IT Leadership and Government Performance

For the purposes of this study, we define leadership simply as behaviors which "go in front"so as to influence (and improve) the performance of others (the followers). This sense ofleadership is widely shared among practitioners. And in case after case there is copiousevidence suggesting leadership's strong impact: from Napoleon's armies, to MagicJohnson's Los Angeles Lakers, to first-graders learning to read, groups that are otherwiseequivalent produce markedly different results due to good or bad leadership.

Figure 1 illustrates the primary concepts and relationships explored in this study. Ingeneral, we sought to understand how IT leadership, in combination with environmental andother factors, influences government performance. In particular, we evaluated a range ofcommonly pursued options for improving governmental IT leadership. These optionsfocused heavily but not exclusively on: (1) actors: getting the right people and skills involvedin the IT leadership process (e.g., changing the role of IT managers, general managers,oversight agency personnel), and (2) activities: getting the IT leadership process to focus onthe right mix of things to do (e.g., changing the emphasis on communication, education,planning, funding).


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Improving Access to Government thro ugh Better Use of the Web

E-Government refers to the use of the Web or other information technologies bygoverning bodies (local, state, federal, multi-national) to interact with their citizenry, betweendepartments and divisions, and between governments themselves. Recognizing thatgovernments throughout the World need assistance and guidance in achieving the promisesof electronic government through technology and the Web, this document seeks to defineand call forth, but not yet solve, the variety of issues and challenges faced by governments.The use cases, documentation, and explanation are focused on the available or neededtechnical standards but additionally provide context to note and describe the additionalchallenges and issues which exist before success can be realized.

Imagine a more efficient government that allows police officers to accept mobilepayments for traffic violations on the spot. Instant payment of fines for speeding and otheroffenses could reduce the delinquency rate for traffic penalties and make it easier to collectunpaid violations.

When he puts it that way, it's easy to see how the perfect combinations between techand government are just now being created. Data-driven policy is a trend Daradics seesplaying a big role in government's near future. Daradics cites tools such as Esri Community

Analyst, a demographic data and planning mapping software, as giving officials usableinformation for making important decisions.

Ideation Nation's goals are to promote collaboration among citizens and governmentsand to give public leaders fresh insight from the public. The effort brought about a flurry ofideas.

Software that allows people to sign up for yard waste collection and find the mostefficient route for pickup

Public Sector Environment:

Spill overs, monopolies, turbulence, complexity

Typical: project, organization, society IT Trends: more powerful technology,

innovative applications Other: organizational strategy, structure,

staff, etc.

GROUP

Actors: right people/skills involved? Activities: right mix/emphasis?

IT LEADERSHIP

Effectiveness Efficiency Equity Etc.

GOVERNMENTPERFORMANCE

--Fig. 3--IT Leadership and Government Performance:

Concepts and Relationship

feedback


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A zoning app that lets residents apply for permits and get other information related tozoning

On-demand lighting that adjusts itself based on the presence of pedestrians or

vehicles to reduce energy consumption A social networking platform for volunteers looking for opportunities posted bynonprofits and government agencies

Electricity monitoring devices that cities can rent out at public libraries andgovernment offices -- for free or for a small monthly fee -- to help decrease overallenergy consumption

An integrated discovery website for camping, hiking, and outdoor recreation A website where balances remaining on gift cards can be pooled together and

donated to charities

VI. Human Resources

As human resource professionals increasingly take advantage of employeeand manager self-service technologies, theres a belief that HR departments onceconsumed with transactional tasks are now free to focus on more strategic work.

HR organizations have been transforming themselves for years, makingsignificant progress in reducing costs and improving operating effectiveness throughHR system and process improvements, shared services, outsourcing and employeeself-service. But thats just part of the value HR Transformation can deliver. The nextbig step for HR is to help the business achieve its strategic objectives forperformance and growth.

We help our clients take that broader view of what it means to transform HRand become a High Impact HR organization. This encompasses not only improvingHR processes and organizational structure a valuable effort in its own right butalso looking strategically at how HR can better support business needs and createvalue for the organization. Often this involves the use of enabling (increasinglycloud-based) technologies, employee engagement tools, advanced workforceplanning and analytics that provide insight into what lies ahead. Its a powerfulcombination to be able to drive alignment with the business, improve organizationaland HR performance and establish a culture focused on adding business value. Thatis what the new generation of HR Transformation is all about.

But does this theory hold up when tested by the realities of the workplace?Experts say it depends on how user-friendly the self-service applications are andhow HR groups define strategic initiatives.

While deploying self-service technologies to help HR have a more strategicimpact is a worthy goal, it doesnt always work out that way, said Jeremy Ames,


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founder and president of the Gaucho Group, an HR technology consulting companyin Medway, Mass. Because the transactional workload across HR disciplines isalready so high, the time freed up by self-service technologies often just means HR

takes on more administrative, nonstrategic work, - To successfully make thetransition from HR being an administrative cost HR becoming an E

HR strategic partner of line management, human resources professionalsmust rethink their strategy for transforming the delivery of information and servicesto managers and employees. New, evolving standards such as extensible mark-uplanguage (XML) are dramatically increasing the ease with which HR can integratevarious systems and databases into an E - HR environment. These technologiesalso help present information in a user-friendly manner that is available toemployees and managers at all times and from all locations.

Watson Wyatt, a USA based eHR company advocates that for companiesto become E HR focused, they need to move their HR communications andtransactions to the Web and Internet.

The Internet provides HR with the ability to transfer information and manycommon administrative tasks to employees freeing HR personnel to pursue morestrategic initiatives. Benefits information, employee data changes and othertransactions that monopolized an HR department's time can now be quickly handledvia the Internet.

Employees and managers are embracing this "self-service" direction.

The functionality of the web is appealing for many reasons beyond cost: A more mobile workforce needs access to HR information at variouslocations and times Changes in work style resulting from the proliferationof more functional wireless devices (phones, pagers, handsets, laptopsand palmtops)

Companies those are ready to adopt an E - HR Strategy and realize thatimproved communications, reduced costs and fewer redundancies can start with thefollowing action steps:

Establish solid executive support for an E HR Strategy. Whether a

company is small, medium, or large; there is an initial investment of moneyand resources required to be successful. Be sure your business case statesthe return on the investment.


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Understand how far the core HR systems extend today. A technologyaudit will help determine the effectiveness of your HR systems anddatabases.

Know the companys IT direction and limitations in areas such as acorporate Internet, and remote computing strategy

Develop a formal strategy for your HR web that improves, integratesexisting content and provides a framework for seamlessly providing accessto users of the systems(s).

Get the most effective specialized support possible (from the IT functionand vendors) to deal with complicated issues such as legal, communications,and data integrity and data security.

Finally, build early impact into the service delivery plan by schedulingclear milestones and achieving them. Early returns on your global servicedelivery initiative can only help build support at all levels within yourmultinational organization.

Developing a global HR service delivery model is also a big topic this year. Wepredict a new model of HR will emerge, one which focuses on global delivery of coreservices, talent services, as well as what we call strategic enablement services. Andtechnology will play a much larger role.

The best way to keep workers' compensation costs under control is to initiate asafety program. Back injuries are one of the most common in the workplace. All employeesshould be trained about the proper way to lift heavy items, which is to squat first and useyour legs, not your back, when you lift something off the floor. A back brace should beissued to every employee who lifts items and they should be required to use it. There arebraces on the market with shoulder straps so that the employee can release the belt whenthey don't need it, yet keep it handy for when they do.

County Safety Program Requirements

A. Emergency Planning

Government will identify reasonably foreseeable emergencies applicable totheir operations to minimize the disruption of IT services and to manage health andsafety risks to employees and visitors in County facilities and operations. Thedevelopment of written plans should be appropriate for the size and needs of thedepartment and should be prepared to meet the Cal/OSHA requirements for writtenEmergency Action and Fire Prevention Plans (8 CCR 3220, 3221). Written


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emergency plans address responses to fire, explosion, bomb threats, chemicalreleases, natural disasters and workplace security emergencies. Departments areresponsible for periodic testing of the emergency plans through evacuation drills and

other training exercises. Evacuation procedures must also address individuals withspecial needs. Plans and procedures will be evaluated annually and revised asneeded.

Risk Management has developed Emergency Action and Fire PreventionPlan templates to assist departments in the preparation of site-specific plans.Training materials are also available from Risk Management.

B. Job-Specific Safety Program Requirements

It is the responsibility of each department to maintain an understanding of

health and safety regulations affecting its operations and to identify additional safetyprogram requirements based upon the unique job hazards identified in the Injury andIllness Prevention Program hazard assessment. An awareness of Cal/OSHArequirements for specific job hazards is required to be in substantial compliance withthe regulations. For example, employees wearing respirators are required toparticipate in a Respiratory Protection Program; employees operating Forklifts arerequired to participate in an Industrial Vehicle Program.

Safety-awareness programs can help your company keep injuries to aminimum. Offer an incentive to employees who spot and report a hazard in theworkplace. Keep track of accident-free days on a large announcement board and

have a celebration when goals are achieved. For instance, for every 100 days thatthe office or facility is accident free, provide lunch for the entire staff and raffle offprizes. This may encourage employees to watch out for themselves and theircoworkers as well.

Managers and human resource representatives should set a good example.Don't ask someone to clean up water on the floor do it yourself. Intercept whenyou see someone picking up a box improperly or walking forward while talking tosomeone and paying no attention to the person coming in the other direction with aheavy cart. Be visible and aware of the conditions in which the employees areworking. Your responsibility and concern to provide a safe environment will be

noticed and appreciated.


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VII. Supply Chain Management

Strategic Vision

The President's vision for reforming government emphasizes that "governmentneeds to reform its operationshow it goes about its business and how it treats the peopleit serves. The vision is guided by three principles:

Citizen-centered , not bureaucracy-centered; Results-oriented ; and Market-based , actively promoting innovation.

Electronic government is one of the five key elements in the Management Agenda andPerformance Plan (August 2001) for achieving the vision. E-Government is critical tomeeting todays citizen and business expectations for interaction with government. It will

enable agencies to align efforts as needed to significantly improve service and reduceoperating costs. When E-Government initiatives deploy effectively, conducting business withthe government is easier, privacy is protected and security provided. Citizens andbusinesses can visit one point-of-service online or by telephone that reflects the UnitedStates Government. Our vision combines successful online operating practices with thefederal governments human capital and physical assets to build a "click and mortar"enterprise. In this vision, organizations serve citizens, businesses, other government andfederal employees. Our goal is that services and information will rarely be more than threeclicks away when using the Internet. Achieving this vision requires that agencies integrateand simplify their operations.

The Strategy

The Administration is committed to advancing the E-Government strategy bysupporting multi-agency projects that improve citizen services and yield performance gains.With that objective, the Task Force developed a roadmap for the implementation of E-Government. OMB Director Mitchell E. Daniels initiated an interagency E-Government TaskForce to identify the action plan for implementing the E-Government initiative. The TaskForce's objectives were to:

Recommend highest payoff cross-agency initiatives that can be rapidly developed; Identify key barriers to the federal government becoming a citizen-centered E-

Government, and implement actions needed to overcome these barriers; and Develop a technology framework that provides for the integration of government

services and information.E-Government provides many opportunities to improve the quality service to the citizen.Citizens should be able to get service or information in minutes or hours, versus todaysstandard of days or weeks. Citizens, businesses and state and local governments should beable to file required reports without having to hire accountants and lawyers. Government


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employees should be able to do their work as easily, efficiently and effectively as theircounterparts in the commercial world.

An effective strategy will result in significant improvements in the federal government,

including Simplifying delivery of services to citizens; Eliminating layers of government management; Making it possible for citizens, businesses, other levels of government and federal

employees to easily find information and get service from the federal government; Simplifying agencies' business processes and reducing costs through integrating and

eliminating redundant systems; Enabling achievement of the other elements of the Presidents Management Agenda;

and Streamlining government operations to guarantee rapid response to citizen needs.

This focuses on four citizen-centered groups, each providing opportunities to transformdelivery of services.

Individuals/Citizens: Government-to-Citizens (G2C); Build easy to find, easy to use,one-stop points-of-service that make it easy for citizens to access high-qualitygovernment services.

Businesses: Government-to-Business (G2B); Reduce governments burden onbusinesses by eliminating redundant collection of data and better leveraging E-business technologies for communication.

Intergovernmental: Government-to-Government (G2G); Make it easier for states andlocalities to meet reporting requirements and participate as full partners with thefederal government in citizen services, while enabling better performance

measurement, especially for grants. Other levels of government will see significantadministrative savings and will be able to improve program delivery because moreaccurate data is available in a timely fashion.

Intra-governmental: Internal Efficiency and Effectiveness (IEE); Make better use ofmodern technology to reduce costs and improve quality of federal governmentagency administration, by using industry best practices in areas such as supply-chain management, financial management and knowledge management. Agencieswill be able to improve effectiveness and efficiency, eliminating delays in processingand improving employee satisfaction and retention.

Better leveraging technology investments will require that government managerslook beyond the current ways of doing work. Todays IT solutions incorporate more

productive ways of doing work, either through eliminating paperwork or integrating activitiesacross longstanding organizational silos. Consequently, affected program officials need tobe involved in strategic IT investment decisions. These investments need to be based onvalid business cases that clearly articulate the value to both the citizen and the government,and provide for privacy and security that is critical to successful e-government.


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A fundamental barrier to getting productivity from federal government IT isgovernments inherent resistance to change. E-Government uses IT to improve federalproductivity by enabling better interactions and coordination. But each opportunity requires

substantial changes in current bureaucratic procedures. Success will depend on breakingdown the resistance to such change. A holistic approach is needed, and each E-Government initiative must include results oriented performance measures, policyalignment, training, communications, and organizational change milestones.

As the Task Force evaluated potential projects relative to the business architecture,the assessment focused on the opportunities to integrate operations and simplify processeswithin a line of business across agencies and around citizen needs. Activities of the federalgovernment can be viewed in four primary functions: policymaking, program administration,compliance, and enforcement and internal operations and infrastructure. Policy makingactivities generally determine programs and compliance efforts. Internal operations areadministrative functions, such as financial management, that support day-to-day activitiesneeded to carry out policy making, program administration and compliance activities. E-Government offers the opportunity to streamline activities, improving productivity by enablingagencies to focus on their core competencies and mission requirements. E-Governmentinitiatives eliminate unnecessary redundancy, while improving service quality by simplifyingprocesses and unifying agency islands of automation.

VIII. Summary

This section outlines general recommendations for the IT project managers, in orderto help them better manage the projects and achieve good results. At the end of this section,it also concludes the whole case study and outlines results found.

Building a well structured teamBuilding a well-structured team with the right mix of skills, experiences and strong

commitment is extremely important to project success. The project manager needs to selectthe right team members, to take advantage of each members skills, to allocate the correctresponsibilities to each member and to motivate them to help in achieving the projectsobjectives. The project can benefit from using the SFIAplus standard, when recruitingproject members, managing the project members skills and planning development activities.It helps the project manager to identify the project team skills, plan relevant training anddevelop activities.

Defining Success Criteria Clearly with Stakeholders

The common criteria for project success are for it to be delivered on time, withinbudget and to meet quality requirements. However, the criteria for success should be muchwider. Different projects may determine and measure varying degrees of success anddiverse objectives for success, in order to manage difference in stakeholder definitions.Some projects can still be considered a success even if they only meet the qualityrequirement, while failing to deliver the original time and budgetary objectives. The project


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manager must continuously obtain and check for agreement with all stakeholders on thesuccess criteria and it helps them to focus on the same direction of success and avoidconflict.

Understandin g Market Needs

Before defining a product or a service, it is important to understand the market needsand potential, because innovative products and services depend on customer acceptance.In order to stand out from the market and attract more customers, a differentiated product orservice that is understandable and determine in concert with a sample of customers is thekey to success.

Understandin g and Managing Technical Issues

In order to achieve a high quality specification, low cost and less time, the projectmanager must understand and manage technical issues properly. Technologies need to befound and tested to ensure that it will achieve project objectives. In some cases, this testingof technology may reveal new business possibilities that had not been previouslyconsidered. The project manager also needs to be aware of technological development,adopt these in the project whenever necessary, and ensure they maintain a healthy stepahead of their competitors.

Managing the Project through the Propo sed Control Cycle

From the two cases studies, a model has been created to show current best practicein the IT industry. The control cycle consists of distinct and recognizable stages, which areplanning, monitoring, reporting, decision-making, corrective actions, and revising.Communication is taking a role as driving force in this cycle. Internal and externalenvironment both can influence the control cycle. The project usually starts from theplanning stage and then monitoring the project performance, reporting to internal andexternal stakeholders and the making of decisions by the project manager and the team.Corrective actions must be adopted if it is necessary. The project manager also needs tokeep revising the project plan, in order to ensure the performance of the final deliverables.Overall, all the critical success factors are involved in the control cycle. The project managershould manage those factors whilst implementing the control cycle.

Complex MIS IT Projects in Government Case Study

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