Business Unit Designation or other informationBusiness Unit Designation or other information
A Clear View Using Component Business Modelling: Case Study - Queenstown Lakes District CouncilCase Study Queenstown Lakes District CouncilRoland BellManaging Consultant, IBM Global Business Services
Make change work for youIBM Insight Forum 09®
Global Business Services
A dAgenda
1. Background and Context
2. Challenges and Expectations
3. Project Approach
4 Component Business Model4. Component Business Model
5 Results5. Results
6. Lessons Learned and Summary
2
Global Business Services
B k d d C t tBackground and Context
3
Source: QLDC Annual Report 07-08www.qldc.govt.nz
Global Business Services
B k d d C t tBackground and Context
100% ownershipJan 09 announced intention to
amalgamate with internalamalgamate with internal engineering services team
100% ownership
Note: this is not anNote: this is not an exhaustive list of QLDC subcontractors…
4 Public Records ActResource Management Act Local Government Official Information and Meetings Act
… and many other Acts…
Global Business Services
Ch ll d E t tiChallenges and Expectations
CEO Duncan Field expectations:CEO Duncan Field - expectations:Increase efficiency of processes through easy to access, consistent and complete informationB tt lit f t d i i kiBetter quality, faster decision-makingBenefits to community and ratepayersA programme of projectsp g p jEach initiative must stand on its own merits
One View initiative (Kirsty Martin CIO):One View initiative (Kirsty Martin, CIO):“One of the biggest challenges a fast growing organisation faces is data sharing. The goal is to provide a single, unified view of business critical data across all co operative agencies ”business critical data across all co-operative agencies.
“By creating a more unified view we want to achieve improved ffi i th ti d d d i k I d t
5
efficiency, smoother operations, and reduced risk. In order to achieve this we need to ensure we have the data required, and trust its integrity, authority and accuracy.”
Global Business Services
P j t A hProject Approach
2. Analyse Requirements / Priorities & Identify
Opportunities
3. Build the Action Plan for Requirements and Design
1. Assess Current State / Gather Data
ies
s)
Best practices (IT)
Initiative prioritisation
ActionCandidate es
“Top 10” issues
proc
esse
s &
si
ble
part
ies
anis
atio
ns in
fo
cus)
Current IT
situation
te o
ppor
tuni
ting
e (in
itiat
ives prioritisation
and action planning
Investment
n Plan for Re
and Design
opportunities for change
rent
sta
te
ents
& p
riorit
ie
y n
Current state assessment
Cor
e p
resp
ons
(for o
rga f
Can
dida
tfo
r cha
n Investment Analysis for
Requirements and Design
phase
equirements
phase
Impacts on people, processes, technology
Cur
rre
quire
me
ectiv
es, p
lans
, ra
ting
stra
tegy
orga
nisa
tions
info
cus)
Input fromenvironment & stakeholders
C t i t
s
Obj
eop
er(fo
r o
User groups / locations
6
•Constraints
•Future directions
Global Business Services
P j t A hProject Approach
1. Assess Current State / Gather Data
2. Analyse Requirements / Priorities & Identify
Opportunities
3. Build the Action Plan for Requirements and Design
es
“Top 10” issues
Initiative prioritisation
ActionCandidate
proc
esse
s &
si
ble
part
ies
anis
atio
ns in
fo
cus)
rent
sta
te
ents
& p
riorit
ie prioritisation and action planning
n Plan for Re
and Design
opportunities for changeC
ore
pre
spon
s
(for o
rga f
Cur
rre
quire
me equirem
entsphase
s
InterviewsWorkshops
Executive Team workshop Working with
b i
7
(engineering, regulatory / environmental)
business sponsors
Global Business Services
C t B i M d lComponent Business Model
City Planning Public Safety Transportation & Infrastructure
Recreation Services
Public Works Services
Municipal Management
Services
Direct Strategic Planning
Performance Regulatory Disaster
Preparedness Planning Admin PlanningInfrastructure
Strategy Event Planning Services Strategy
ControlAnalytics Recreational
Facilities Oversight
Engineering Reporting
Monitoring
Contracts
ReportingManagement
Public Safety Reporting
Program Management
Housing Administration
Sports Facilities & Events
Emergency Response
LegalDevelopment Control
Execute
Property & Land Prevention & Awareness
Service Delivery
HRDocument M t
Libraries
Control
8
Property & Land Management
Awareness ManagementHeritage
Preservation IT
Global Business Services
C t B i M d lComponent Business Model
Component Business Model
Strategic
City Planning Public SafetyTransportation
& Infrastructure
Recreation Services
Public Works Services
Municipal Management
Services
Preparedness Admin Infrastructure Event Services
Columns are Business Competencies, defined as large business areas with characteristic skills and capabilities for example
Component Business Model
Control
Direct Strategic Planning
Analytics Recreational Facilities Oversight
Engineering Reporting
Performance Monitoring
Contracts
Regulatory Reporting
Disaster Management
Public Safety Reporting
Preparedness Planning
Admin Planning
Infrastructure Strategy
Event Planning
Services Strategy
Program Management
skills and capabilities, for example, product development or supply chain.
Execute
Contracts Reporting
Housing Adminis-
tration
Sports Facilities &
Events
P ti &
Emergency Response
Service Delivery
Legal
Libraries
Development ControlAn Accountability Level characterises
the scope and intent of activity and decision making The three levels
Property & Land
Management
Prevention & Awareness HRDocument
ManagementHeritage
Preservation IT
decision-making. The three levels used in CBM are Directing, Controlling and Executing.
Directing is about strategy, overall direction and policy Business
A Business Component is a part of an enterprise that has the potential to operate independently, in the extreme
direction and policy.Controlling is about monitoring, managing exceptions and tactical decision makingExecuting is about doing the work
Business Purpose
Activities
Governa
Business S
9
yas a separate company, or as part of another company.
Executing is about doing the workResources
ApplicationsInfrastructure
ance
Services
Global Business Services
Component Business Model – example showing p p gimportance vs. resource use
High cost but
City Planning Public SafetyTransportation
& Infrastructure
Recreation Services
Public Works Services
Municipal Management
Services
High cost but differentiating (adds
significant value)
Direct Strategic Planning
Analytics Recreational Performance Monitoring
Regulatory Reporting
Disaster Management
Preparedness Planning
Admin Planning
Infrastructure Strategy
Event Planning
Services Strategy
StrategicPlanning
Analytics
(We need to be known for engineering)
ControlAnalytics Recreational
Facilities OversightEngineering Reporting
Monitoring
Contracts
ReportingManagement
Public Safety Reporting
Housing Sports E
Program Management
Analytics
E
Engineering
Housing
Execute
Housing Adminis-
tration
Sports Facilities &
Events
Prevention &
Emergency Response
Service Delivery
Legal
HRD t Libraries
Development Control
EmergencyResponse
HousingAdminis-
tration
High cost but non-differentiating: costProperty &
Land Management
Prevention & Awareness HRDocument
ManagementHeritage Preservation IT
differentiating: cost control opportunity
(We don’t need to be known
10
Key: Differentiated component
High resource use
( e do t eed to be ofor doing contracts)
Global Business Services
Component Business Model – example showing p p gapplications and data
City Planning Public SafetyTransportation
& Infrastructure
Recreation Services
Public Works Services
Municipal Management
Services
Duplication:
two systems
Replication:
information held in
Direct Strategic Planning
Analytics Recreational Performance Monitoring
Regulatory Reporting
Disaster Management
Preparedness Planning
Admin Planning
Infrastructure Strategy
Event Planning
Services Strategy
yproviding same
function within one component
multiple places
ControlAnalytics Recreational
Facilities OversightEngineering Reporting
Monitoring
Contracts
ReportingManagement
Public Safety Reporting
Housing Sports E
Program Management
p
S t
Execute
Housing Adminis-
tration
Sports Facilities &
Events
Prevention &
Emergency Response
Service Delivery
Legal
HRD t Libraries
Development Control
System a
System b
Property & Land
Management
Prevention & Awareness HRDocument
ManagementHeritage Preservation IT
11
Key: Application systems
Name and Address data
Global Business Services
C t B i M d lComponent Business Model
"We drew together a one-page map of what the council looked like and from there, for each of the components of the council, asked what were the inputs and outputs and where did they need to getwhat were the inputs and outputs and where did they need to get information from."
"It was quite an interesting process because people started offIt was quite an interesting process because people started off thinking it was an IT project but once they got talking about the difficulties they face day-to-day just finding information, and we'd moved it to a business process discussion, it became quite fruitful."moved it to a business process discussion, it became quite fruitful.
"It's been really good to provide a framework to move forwardwithout diving straight into a technical solution which is always awithout diving straight into a technical solution, which is always a mistake”.
Q t L k Di t i t C il CIO Ki t M ti
12
Queenstown Lakes District Council, CIO, Kirsty Martin
Global Business Services
R lt i ll tiResults – issue collection
Issues for “Resource Planning” business component
Financialperspective
High proportion of unplanned / reactive work; resource conflicts
Less predictable project expenditure & time estimating
Increased costs Missed revenue opportunities
Less predictable estimates of project length & project costs
Potentially more disruption for community (esp. when infrastructure is being built / repaired)
Underlying issues get missed and take too long to deal with, leading to frustration
Reduced community trust in Council; loss of trust leads to decreased community confidence
Community
Don’t know what resource allocation is at start of year
Internal ProcessBusiness processes
No resource planning for infrastructure
allocation is at start of year (not known if too much or not enough); uncertainty as to what we can deliver
Key finding(s):Resource planning not occurring
consistently. Likely to be resulting in increased costs through unplanned work,
delayed work, resource conflicts, in addition to negative community impacts.
Business processesApplicationsInformation, Data, Technology
projects
People work longer than
Improve resource
l i
People not getting adequate training;
Increased stress leads to greater staff turnover; turnover
13Learning
and Growth
gthey need to planningdevelopment plans
not targeted, not effective
g ;leads to increased costs, delays in projects, and sometimes no handover when staff leave
Global Business Services
R lt li ki b fit t biliti d blResults – linking benefits to capabilities and enablers
BenefitsKey: Resource PlanningA hi
Value providedAchieve better predictability of project duration and expenditure
Reduce costs through reducing
resource conflicts
Capability
Enabler
Reduce reactive and unplanned
work
Develop capabilities of people resources
in line with better understood future
requirements (more targeted
Achieve greater revenue
opportunities
Anticipate and
targeted development plans)
Things QLDC
Estimate
Share resource requirements and
commitments j t
Schedule resources
required for projects
Anticipate and manage resource conflicts
needs to do
Estimate resources
required for projects
Capture actual resource requirements from past projects to inform estimating in
future projects
across projectsMaintain visibility of planning done by
external parties (e.g. consultants)
future projects
ProjectProject planning and scheduling
Processes and facilities to share information with
external parties
Things QLDC needs to have
14
Project requirements
Project planning and scheduling process
and scheduling tools
Project knowledge repository
Project Managers / Project Planners trained in new
processes & tools
Global Business Services
R lt i iti ti i iti tiResults – initiative prioritisation
2
5
Hi
34
5
69
1011
13
1
14
s 6
8
121
ct o
n C
SFs
Hard-fought major projects Quick Wins
Low urgency8
Impa
c Low urgency
Medium urgency
High urgency
7
The size of the bubble represents the ‘cost’ score. The larger the bubble, the higher the cost.
15 Ease of implementationWaitDon't Do
Harder EasierLo
Global Business Services
L L dLessons Learned
An organising framework (CBM) – worked very well in terms of engagingAn organising framework (CBM) worked very well in terms of engaging both staff and the executive team
It allowed anchoring of the issues as well as the initiatives arising from the Scoping PhaseScoping Phase"You've got to make sure you've got the business sorted first so it drives your technical response." – Kirsty Martin, CIO
Early involvement was key to buy-in“Involving staff in the process ensures their "pain-points" are understood and g p p pgets project buy-in.” – Kirsty Martin, CIO
We built re usable frameworks that QLDC could continue to use followingWe built re-usable frameworks that QLDC could continue to use following the engagement:
CBM; prioritisation model
16The process “worked”; implementation is now underway
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