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Marcus Glasper, Deputy Director
Washington State Department of Revenue
WSATA 2016
Scottsdale, AZ
Governance and Organizational Change Management Key Components for Large I.T. Projects
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• About Washington’s replacement project
• Top reasons why projects fail
• Governance
o Importance; Washington’s approach
• Top reasons why projects succeed
• Organizational Change Management
o Purpose; components; Washington’s approach
Outline
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Vision
Transforming Revenue’s future through collaborative efforts,
improved processes and proven technology solutions.
Scope
The scope of the project is defined by
the following:
• Implementing a solution that
supports the administration of the
core tax and business licensing
programs
• Work efforts to prepare people
and systems to use the new
solution
• Replacement of over 40 aging tax
and licensing applications
TLSR
IDOCS
EPMS
TIRTS
Excise Tax
E-file
TARIS
BRMS
Audit 2000
BLS
CRMS
We have completed the first of three launches for the Tax and Licensing System
Replacement (TLSR) project
Background – About Washington’s Project
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Top Reasons Why Projects Fail
Reason What this requires
Strategy failures Solving the right problems
Engagement Failures Effective stakeholder involvement
Organizational and planning failures The right amount of planning and
communication
Governance and Leadership failures Appropriate accountability and
escalation processes
Underestimation and analysis failures Understanding the required complexity
Quality failures Ensuring that deliverables are within
acceptable tolerances
Risk failures Paying the right amount of proactive
attention to risks
Skills, knowledge and competency
failures
Ensuring the right skills on the team
(project and extended)
Depending on the research source, only 30 to 40 percent of projects are deemed successful
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Project Governance
• A strong, clear and well understood governance is critical to
project success and includes:
Active and invested executive sponsor
Active and involved business and technology sponsors
Active and engaged steering committee
Clear articulation of what decisions are made, who can make
them, when they are made, and rationale (business and
technical)
Simple and clear project management plan, which provides a
framework for how the project operates, tracks and evidences
progress
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Active and Engaged Executive Sponsor
• The executive sponsor is a critical role outlined in project
management methodology and is responsible to the
enterprise for the success of the project.
• In addition to the positional attribute (authority), five
personal attributes of the sponsor are:
understanding
competence
credibility
commitment
engagement
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Executive Sponsor Responsibilities
• Champions the project – sets the tone and vision
• Sponsors the project – chairs the steering committee
• Provides oversight – approves and supports governance
• Engages project stakeholders – including other agencies
• Brings visibility internally and externally
• Governs project risk – monitors and mitigates key risks
• Supports the project director and project leadership
• Provides financial and human resources
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Business Sponsor Technology Sponsor
Provides business leadership and
guidance
Provides technology leadership and
guidance
Supports and communicates business
vision
Ensures alignment with short term and
long term technology roadmap
Monitors and leads business decisions
throughout the project
Monitors, leads and communicates
technology decisions
Sponsors readiness of internal and
external stakeholders
Ensures that I.S. is ready for the new
solution after project completion
Communicates and engages business
counterparts
Communicates and engages within I.S.
and other state I.S./I.T. bodies
Assigns the right business skills,
experience and resources
Assigns the right technology skills,
experience and resources
Larger projects require additional sponsor roles to ensure timely attention to decisions, risks
and issues
The business sponsor and technology sponsor are generally key members of the steering committee
Business and Technology Sponsors
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Steering Committee Responsibilities
• Guides the project – owns the outcomes of the project
• Fosters commitment – across and down divisions
• Provides oversight – approves and supports governance
• Manages change – across agency and divisions
• Supports risk and issue processes – proactively manage risks
• Actively monitors progress – to established metrics and tolerances
• Supports the project team – project leadership
• Provides skills, experience and resources – as required
An active steering committee is a known key to success
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TLSR Project Governance
Ente
rprise P
roje
ct Man
agem
en
t
Stakeh
old
er En
gagem
en
t
Vision & Objectives
Project Portfolio
Program & Project
Business
Technology
Project
Project Leadership Team
Project Team
Subject Matter Experts
All Stakeholders
Data Governance Committee
Steering Committee
Executive Sponsor
Core Project Leadership Team
Project Director (includes Assistant Project Directors)
Quality Assurance
Technical Steering Committee
Ente
rprise P
roje
ct Man
agem
en
t En
terp
rise Pro
ject M
anage
me
nt
Stakeh
old
er En
gagem
en
t Stake
ho
lder
Engage
me
nt
Vision & Objectives Vision & Objectives
Project Portfolio
Project Portfolio
Program & Project
Program & Project
Business
Business
Technology
Technology
Project
Project
Project Leadership Team Project Leadership Team
Project Team Project Team
Subject Matter Experts Subject Matter Experts
All Stakeholders All Stakeholders
Data Governance Committee Data Governance Committee
Steering Committee Steering Committee
Executive Sponsor Executive Sponsor
Core Project Leadership Team Core Project Leadership Team
Project Director (includes Assistant Project Directors)
Project Director (includes Assistant Project Directors)
Quality Assurance
Quality Assurance
Technical Steering Committee Technical Steering Committee
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Decision Model Decision making is pushed to the lowest level possible
Business Decision Teams Functional Area Team(s)
Decision
Review
Team (DRT)
Executive
Decision Team
Roles
Subje
ct M
atte
r
Expert
s (S
MEs)
Deve
lopers
/
Tech
nic
al S
MEs
Deci
sion M
akin
g
SM
Es
Busi
ness
Anal
yst(
s) (
BA
)
Busi
ness
Lead
(s)
(BL)
TLSR
Pro
ject
Dir
ect
or,
or
desi
gnee
Pro
ject
Busi
ness
Sponso
r, o
r
desi
gnee
Ste
eri
ng
Co
mm
itte
e
Execu
tive
Sponso
r
DO
R D
irect
or
Configuration decision related to a
specification/requirement that:
a. Does not change a current business activity
within a business process; same functionality;
only one configuration option
C C R C R A I I I I I
b. Does not change a current business activity
within a business process; same functionality;
multiple configuration options
C C R C R A I I I I I
c. Changes a current business activity within a
business process; has a minor impact; affects a
single division or multiple divisions
C C R C R A I I I I I
d. Changes a current business activity within a
business process; has a moderate impact; affects
a single division or multiple divisions; with team
consensus
C C R C R A I I I I I
e. Changes a current business activity within a
business process; has a significant impact C C REC C REC REC REC R A I
f. Requires customization to the COTS (GenTax)
Solution C C REC C REC REC REC REC R A
g. Is outside of the current scope; requires a change
request
Example: Addition of Local Tax.
C C REC C REC REC REC REC R A
Responsible
Accountable (also
Approver)
Recommendation
Consulted
Informed (also Reviewer)
RA(R)CI Chart:
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Decision Process Roles & Responsibilities
Executive Decision Team
Confirm, revise or overturn decisions made by DRT
Make decisions on open "Decision Needed" items
Document decision outcomes
Decision Review Team (DRT)
Confirm, revise or overturn decisions made by
Functional Area Teams
Make decision on open "Decision Needed" items
Escalate? Document as "Decision Needed" and
provide recommendation
Document decision outcomes
Review Executive Decision Team
outcomes
Functional Area Teams
Identify need for a decision Make decision. Document as
required and include assumptions
Need to escalate? Document as "Decision Needed" and provide recommendation
Review Decision Review Team and Executive Decision Team
outcomes
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Decision Arbitration Process
• Arbitration Path should there not be consensus
Conflict Scenario Recommended Escalation
(Unless conflict is related to a customization or addition to scope,
then Agency Director)
Business to Business Senior Assistant Director of Operations
Business to Information
Services (I.S.) or
Administrative Services
Senior Assistant Director of Operations
to consult with Senior Assistant Director of Administrative
Services
Contractor to Revenue TLSR
Resource Executive Sponsor via TLSR Project Director
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Top Reasons Why Projects Fail
Reason What this requires
Strategy failures Solving the right problems
Engagement Failures Effective stakeholder involvement
Organizational and planning failures The right amount of planning and
communication
Governance and Leadership failures Appropriate accountability and
escalation processes
Underestimation and analysis failures Understanding the required complexity
Quality failures Ensuring that deliverables are within
acceptable tolerances
Risk failures Paying the right amount of proactive
attention to risks
Skills, knowledge and competency
failures
Ensuring the right skills on the team
(project and extended)
Depending on the research source, only 30 to 40 percent of projects are deemed successful
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Top Reasons Why Projects Succeed
Reason Description
Creating partnerships with
stakeholders
Internal, external and vendors involved
“Selling” to the stakeholders Breaking down attachment to the status
quo
Adequately resourcing the project People with the most knowledge are often
needed for most of the project
Effective management of expectations
and communications
The solution cannot be everything to
everybody and must be managed
Encouraging functional ownership Promoting (business) ownership at the
onset and throughout the project
Implementing business readiness
assessments
Ensuring that activities to promote
readiness and adoption are effective
A project governance that promotes
quick response
Clearly defined rol3es, responsibilities and
escalation/resolution processes
Depending on the research source, only 30 to 40 percent of projects are deemed successful
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Guide leaders and change network in
effectively leading, supporting positive
change
Inform, prepare staff (and customers) on
how to deal with the new changes
Facilitate letting go of ingrained practices and
moving to new ways of doing business
Create a climate of change competence –
build the learning aspects of organizational
change
Minimize disruption with the transition and
realize business benefits earlier
• Address the impacts of change, before they occur, by initiating
a series of strategic and tactical activities designed to:
Organizational Change Management
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Proactively addressing change manages concerns, helps stakeholders realize the benefits
earlier
Perception of Change Through the Project
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Critical First Step – Analyze Stakeholders
Who (internal and external) will be affected by this change? How are they important to the success?
o What groups?
o What individuals?
o What customers?
Stakeholders need to understand:
• What the change is
• Reason for change
• Level of impact
• What their roles are in effecting the
change
• How they will be supported
throughout the change
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Create an Accountability Framework
Executives, sponsors and steering committee
Stakeholder groups
OCM Team
PMO & project team
Change/business network
Understand stakeholder needs
Engage early and often
Address business impacts
Collaborate and communicate
Lead at all levels
Support the process and the
teams to maximize success
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The Role of the Change Sponsors/Champions
• Provide direction on approach
• Mitigate resistance at all levels
• Manage stakeholder expectations
• Promote accountability for the success of the change
• Empower change champions to be able to affect change and
elevate key issues to executive sponsor as required
• Create “sense of urgency”
• Participate in key change activities and communication events
• Promote the change at all levels
• Manage risks and issues proactively
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OCM Cycle for Washington – Rollout 1
Rollout 1 OCM Cycle GO LIVE GO LIVE
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8
Monitor and Measure Readiness, Engage Stakeholders and Communicate
Develop and Manage Sustainable Activities
• Update high level change assessment • Assess readiness • Develop detailed stakeholder matrix • Develop vision, measures, messages • Align strategies with COTS vendor • Develop process impacts plan • Develop OCM plan • Develop communications and stakeholder
engagement plan • Align change network plan and model • Assess DOR change needs and capabilities • Assess Rollout 1 training needs • Validate and align with COTS vendor plans
• Validate organization and process impacts • Assess readiness for Rollout 1 (user acceptance) • Refine approaches and plans based on assessments • Execute OCM plan • Execute communications and stakeholder
engagement plans • Execute process impacts plan • Build change needs/capability • Determine and establish post go-live support model • Assess readiness for Rollout 1 Go-Live
Month 9
• Evaluate knowledge transfer • Monitor transition of Rollout 1 • Monitor support model
effectiveness • Refine support model as required • Conduct post implementation
review (lessons learned) • Monitor and manage sustainable
activities for Rollout 1
Month 10 Month 11 Month 12
Mentor and Support Change Capability
Reinforcing
Preparing and Aligning
Managing
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It’s not the strongest species nor the most intelligent that survives - it is the one that is
most adaptable to change. Charles Darwin