26 November Nikki Kaye Chairperson Education & Science Committee Private Bag Wellington Dear Nikki Kaye

Transcription

1 MINISTRY OF EDUCATION Te Tii/ru/111 o /e Millnurnugn 26 November 2012 Nationnl Office Education Workforce Pipitea Street Thorndon PO Box 1666 Wellington New Zealand Phone: Fax: I Nikki Kaye Chairperson Education & Science Committee Private Bag Wellington 6160 Dear Nikki Kaye Thank you for your letter dated 20 November 2012 regarding Information request for updates on Novopay schools' payroll service. I have attached a status update below. Rowena Phair Deputy Secretary Student Achievement

2 Introduction The Education Service Payroll is the largest payroll in New Zealand, with approximately $3.4 billion disbursed annually. Over two million pays are made per year via a fortnightly pay cycle. The schools payroll is very complex. It pays 90,000 people every two weeks and 110,000 people over the course of year. There are 6,128 administrators of Novopay at 2,547 schools. There are approximately 10,000 potential different combinations of pay conditions. Many staff are employed by multiple schools, but one payslip per person is produced, regardless of how many schools they work at. Staff service for entitlement purposes is calculated at school level but also at sector level. Datacom had been operating the schools payroll since The Novopay Project was established to introduce a more up to date, online payroll with lower reliance on manual processes. The Novopay service provided by Talent2 went live on 20 August 2012 with its first pay on 5 September. What were the key events leading up to the implementation of Novopay? /2005 Cabinet approved appropriation for new schools payroll system the Ministry would implement the new payroll system with payroll processing continuing to be provided by outsourced providers. 2/2005 Talent2 chosen as provider of Alesco software for operation by Ministry for schools. 2005/2006 Datacom advised that support on current technology platform had been extended this reduced the urgency of progressing to a new payroll system Ministry reassessed options for schools payroll and started considering a full outsourced approach /6/2007 Ministry Leadership Team agreed to change from previously agreed approach to a Business Process Outsourcing (BPO) approach rationale was that this would be less costly, would transfer risk from the Ministry to the BPO vendor, and would require less expertise and resource from the Ministry when compared the Ministry managing the system itself. 8/2007 Cabinet agreed to the BPO approach. 5/9/2007 Registration of Interest (ROI) for schools payroll BPO service issued on GETS 11 responses received.

3 31/10/2007 Recommendation of shortlist made four chosen. 11/2007 Stage 2 business case approved by Cabinet no additional funding sought but transfers between capital and operating required. 12/12/2007 Request for Proposal for schools payroll BPO service issued to the previously chosen shortlist of four (one did not respond) /4/2008 Preferred vendor (Talent2) chosen from the three responses. 20/5/2008 Contract negotiations with Talent2 concluded. 11/8/2008 Contract signed with Talent2 by Minister Carter. 6/10/2008 Formal Novopay project started. Go live was to be South Island first in May 2010 followed by the North Island in September /5/2010 Go live formally delayed into 2011 with single nation-wide go live date and contract variation agreed /2011 Start of development of a contingency option with Datacom in case of failure of Novopay. 12/2011 Novopay go live formally delayed to June 2012 and contract variation agreed with Talent /4/2012 Confidence Point #1 two of four requirements met project continued as sufficient progress made. 5/2012 Novopay go live confirmed for August /5/2012 Datacom signed conditional contract for contingency option that could be invoked up to 1 July 2012 should Novopay not be able to proceed. 31/5/2012 Confidence Point #2 seven of eight criteria met remaining criterion was scheduled to completed in June. 5/6/2012 Recommendation made to Ministers of Education, Finance, Associate Minister of Education to approve Novopay go live. Recommendation accepted. 27/6/2012 Online training for schools started and schools gained access to NovopayBeta sandpit system and the online training modules. 1/7/2012 Datacom contingency option expired not invoked as there was sufficient confidence in Novopay that it should go ahead. 15/8/2012 Final go live decision by Novopay Board based on readiness checklist 78 indicators, 72 green, 6 amber, none red. 20/8/2012 Go live with schools able to access live Novopay. 5/9/2012 First pay run on Novopay. How different is Novopay from the previous service provided by Datacom? Novopay is far more automated than the previous service. The Datacom system had served the Ministry well. However, it relied on many manual calculations undertaken by pay clerks. Schools were able to use some basic internet services with Datacom, but most schools interacted with Datacom using paper forms. Datacom did not have a

4 comprehensive service desk schools had an assigned pay clerk who looked after them and schools would phone or fax this person. Under Novopay schools can do most common tasks online, have direct access to a service centre, and more pay calculations are automated than previously. Why was there confidence in Talent2 and its ability to implement a successful schools payroll? The Ministry undertook a comprehensive Registration of Interest (ROI) and Request for Proposal (RFP) process to choose the vendor best qualified. The ROI was made public on the GETS website and had 11 responses. The RFP was sent to shortlist of four vendors three responses were received, all very comprehensive. Talent2 was assessed as the best of the vendors through a comprehensive evaluation process. Talent2 had an excellent track record in payrolls. They also understood the Ministry requirements through previous work undertaken on analysing Ministry payroll requirements during 2005/06. [130] Did the Ministry of Education develop an implementation plan for the introduction of the new Novopay payroll system, in 2011/12 or any of the past 3 financial years and if so can a copy of this plan be provided? The Ministry developed comprehensive implementation planning documentation from the time the Novopay project started in October The Project Initiation Document contains the high level plan used. This document changed through the life of the project as changes were agreed. The implementation plan sections of main versions of the Project Initiation Document are attached. Extract from Novopay Project Initiation Document - Oct 2008 (v1-00) Extract from Novopay Project Initiation Document - May 2010 (v1-13) Extract from Novopay Project Initiation Document - Dec 2011 (v2-18) Extract from Novopay Project Initiation Document - May 2012 (v3-02) Extract from Novopay Project Initiation Document - July 2012 (v3-05) [131] If the Ministry of Education had an implementation plan for the transition to the new Novopay payroll system, were any amendments made to this plan during the 2011/12 financial year or any of the previous 3 financial years and if so what were they? All plans had minor amendments made as part of the day to day response to issues and risks. Significant changes to scope and timeline occurred between new baselined versions of the Project Initiation Document. The major changes between baselined document versions are summarised below. Major changes from May 2012 (version 3.02) to July 2012 (version 3.05)

5 Minor changes in programme and governance structures. Additional detail in summary timeline. Major changes from December 2011 (version 2.18) to May 2012 (version 3.02) Go live date moved from June 2012 to August Major changes from May 2010 (version 1.13) to December 2011 (version 2.18) Go live date moved from May 2011 to June Takes into account contract variation #2 signed with Talent2 in October Major changes from October 2008 (version 1.00) to May 2010 (version 1.13) Go live date moved from September 2010 to May Change from two stage implementation (South Island then North Island) to single stage implementation (whole of country at once). Takes into account contract variation #1 signed with Talent2 in May Why was Novopay not piloted in a selection of schools? The original plan was to implement Novopay for the South Island in May 2010 and for the North Island in September This was changed to a single nation-wide go live because due to the complexity of managing staff moving between islands and the slipping timeframe. Staff work at multiple schools and receive a single payslip. If a pilot occurs at a selection of schools, the providers need to manage the staff moving between the pilot and current payroll. It was going to be a very complex undertaking to manage the moving of staff between payrolls while still providing a single payslip to staff. [129] Did the Ministry of Education develop a contingency plan, in 2011/12 or any of the past 3 financial years, to deal with errors and problems with the transition to the new Novopay payroll system and if so can a copy of this plan be provided? The Ministry develop two contingency plans to manage potential problems with Novopay: Contingency Plan One: In 2011/12 the Ministry developed a contingency option with Datacom. The plan used to manage the development of this contingency with Datacom is attached [Extract from Payroll Continuity Option PID (Revised)]. Contingency Plan Two: The Ministry anticipated that the new payroll would have some bedding in problems and that this would require rapid responses to address this. The core of the post-go live contingency was therefore the establishment of a Rapid Response Centre (RRC). The RRC starting meeting from 22 June 2012 and remained active through go live coordinating the responses to the issues as they arose. The

6 memo to the Novopay Board stating the overall intention and structure of the RRC is attached [Memo to Steering Committee 20 June 2012 re Rapid Response Centre.pdf]. Who was responsible for the training of users at schools? Talent2 is the expert on its own systems and business processes and how to train people to use them effectively. Before go live, Talent2 was responsible for providing training and documentation to users at schools. After go live, Talent2 remains responsible for providing ongoing training and documentation. Under the agreement with Talent2, the Ministry has a general obligation to co-ordinate stakeholders to ensure performance of stakeholders responsibilities. To fulfil this obligation and help ensure a smooth implementation, the Ministry worked hard to ensure school staff were signed up to training and had all the information they needed to use the new service as well as providing additional targeted training in specific areas. What training was provided to users at schools? Schools first had access to online training and the NovopayBeta sandpit to practise in from 27 June this year, two months prior to go live. All training was online. School users were to do training spread across five online training modules they could stop and start whenever they liked and redo modules if desired. The training covered common scenarios users would experience. The NovopayBeta system was available to practise on. Users who were having difficulties could contact the Novopay service desk. By go-live 2,440, or 99.6% of all schools had completed the foundational training module Module 0. This equated to 4,867 or 82.8% of all authorised users (as most school have more than one authorised user). Advanced users were invited to do two days of advanced training as Novopay Online Specialists (NOS). They are available to be called directly by schools experiencing problems or having questions. The details of the NOSs was publicised on the Novopay website. There were initially 88 NOSs grouped by region and school type. Some schools are actively using this support channel but usage is variable. Five specific hard copy documentation packs Novostart packs were sent to all schools up to go live, each one addressing a different set of issues. Immediately after go live the Ministry ran a series of one hour webinars over a period of two weeks addressing issues that were emerging at go live. The school authorised users attending each webinar type were as follows: Timesheets 565 Relievers 552 Leave 449

7 A subsequent set of e-workshops (catering for smaller numbers of staff and more interactive) ran for four weeks and focused on frequently asked questions. These were attended by 511 authorised users. A road show travelled around New Zealand for two weeks in November to assist schools get ready for the end of year and start of year processes and to answer other queries. The Ministry also has a team of seven payroll experts from the sector who have been resolving issues with schools and making visits where required. [132] What criteria did the Ministry of Education set to assure that the Novopay payroll system would work accurately and efficiently? The Novopay system was tested through a comprehensive process of payroll verification. This involved comparing payroll calculations from the Datacom TM4 system with the new Novopay Alesco system. Accuracy was determined by comparing results for a given pay period between the two systems and ensuring any differences were explainable and acceptable. Comparisons were made in the following main areas. Money Paid to Staff 80,000 individuals were compared between Datacom and Novopay for the amount paid and differences explained for all but 757 individuals. Each of these 757 individuals was then examined and all differences were explainable and assessed as manageable either through defects that were in the process of being fixed or through data conversion changes. Staff Leave Calculated More than 250,000 leave records were compared with 96% balancing exactly. Of the remaining 4%, all differences were explained except for 1,321 leave records. These leave records were further investigated and the differences were assessed as being manageable. Banking Staffing Of the approximately 50,000 comparable banking staffing records, all but 0.4% of the records were matched or the difference found to be explainable. These records were investigated and no issues were identified that would impact schools. Staff Service Accumulation Of the over 390,000 service accumulation records that were compared, 0.81% had differences that required additional investigation. These identified differences were assessed as being manageable. Other Defects Any defects or required configuration changes required for leave, banking staffing, or service accumulation were documented and actioned through the normal defect resolution processes. The efficiency of the Novopay system was tested as part of the performance testing.

8 What is at the heart of the current problems? Issues with the roll out of the Novopay payroll service will be examined in more detail in a post implementation review. [133] As part of the transition to the new Novopay payroll system, did the Ministry of Education plan for potential payment errors and the need to reimburse schools and teachers for incorrect payments and if so can a copy of those plans, briefings and reports be provided? The Ministry had a plan to respond to potential payment errors and to reimburse schools and teachers if required. Has the Novopay service improved since go live? The Ministry has had a strong focus with Talent2 on improving the performance of the Novopay service and there has been steady improvement since go live. This is summarised in the following table. Pay day Characteristics Paid Not paid through Novopay 5 September Transition 89, September 89, October End of term 90, October School holidays 87,119 Fewer than October 90, November 92, What is the Ministry doing to solve the current problems at schools? The Ministry is increasing its resource focused on assisting schools to manage the end of year processes and solve their existing problems. Direct inquiries from schools to the Ministry are now being logged and managed by a team of seven. A temporary contact centre with sixteen staff (although this number varies day to day) has contacted all school staff who had notified the Ministry about problems they had. The issues were acknowledged and verified and any other issues identified. The Ministry has six case managers with specific payroll expertise following up issues that schools have reported to the Ministry. The Ministry has a further seven payroll experts supporting Talent2 and schools directly. The Ministry has contracted an additional six payroll experts to supplement this team. Twelve temporary staff are assisting schools with any end of year and start of year issues. The Ministry is developing a plan for direct school visits to address the systemic issues occurring at some schools.

9 Talent2 is also increasing its resources and capability to address the remaining backlog of payroll instructions and ensure it can provide a service to schools that meets the contracted service levels. How much did the Novopay service cost? Details of the costs are commercial in confidence, but the key costs are: Total cost of Novopay transition project $29.5 million approximately half Talent2 and half Ministry and other resources Total contract cost for Talent2 implementation and eight years operation $100.5 million. How will the Ministry ensure that the lessons from Novopay are captured and applied to future initiatives? The Ministry is obliged by Cabinet Circular CO(10)2 to undertake a formal Post Implementation Review of the Novopay project. The Ministry is proposing that an appropriately qualified independent organisation conduct a formal Post Implementation Review in April This timing will enable schools to complete end of year and start of year processes, Ernst and Young to complete its audit of the pay centre, and the end of tax year processes to be completed. The work will be commissioned in February 2013 by the Ministry and the State Services Commission. Sector input will be sought regarding the terms of reference.

10 Project Initiation Document Schools Payroll Transition Project 9 Initial Project Plan 9.1 Plan Description The purpose of the Transition Project Plan scope is to move from the current Datacom Education Service Payroll environment to the new Talent2 Education Service Payroll environment. The scope of the initial Transition Project Plan is to: set up the Service Desk and Payroll Centres deliver new business processes, including training Ministry staff and schools payroll support staff implement and host a modern payroll system or systems receive a data extract from the existing IT system, transform, clean and load data into the new payroll system or systems define and implement new service support and service delivery processes, including supporting IT systems. 9.2 Project Pre-requisites The contract agreed with Talent2 requires a planning phase to start on 1 August 2008 and full project commencement on 6 October For this to occur, significant establishment effort is required in the key areas of: planning resources and infrastructure, transition of current vendor communications, and data cleansing. The Schools Payroll Transition Establishment Project undertook the work required for the Transition Project to start on 6 October It effectively bridged the work undertaken to choose a vendor and agree a contract with the work required to implement a successful transition to the new schools payroll arrangements. Version 0.3 DRAFT 38 of 88 Ministry of Education 2008

11 Project Initiation Document Schools Payroll Transition Project 9.3 External Dependencies The Transition Project has a number of dependencies with areas within the Ministry. The Transition Establishment Project has agreed Memorandum of Understandings with the Ministry areas, excluding Legal and Executive Communications who provide the services as part of their normal business practices. The following table identifies these areas and the dependencies the project has. Ministry Area Dependencies BaSiS Providing oversight and advice from the CIO through the Project Board Providing user acceptance testing services to the schools payroll processing. Providing the New Zealand Education Sector Authentication and Authorisation shared service (ESAA) and authentication platform. Advising the project how to implement and operate ESAA. Advising of document management strategy and IT solution for the Ministry. Delivery & Determination (D&D) The data feed from the payroll system to the payroll data warehouse operated by DM&A that provides data used by D&D. The data file provided by STEER (currently the Wednesday of the pay-run) to Schools Payroll that enables the Banking Staffing Report to be produced and sent to schools. Consultation with D&D staff regarding the STEER interface file. Consultation with D&D staff regarding sick leave processing. DM&A The data feed from the payroll system to the payroll data warehouse operated by DM&A. Consultation with DM&A staff regarding how the data feed to the data warehouse will operate. Potential additional data teacher registration, qualifications/ethnicity, leave information. Executive Communications Advice and assistance regarding communications strategy and planning, and risk management. Finance Consultation with Finance staff regarding the finance payroll processes. Implementing the finance payroll processes that interact with the provider for the new schools payroll arrangements, schools, and external agencies. Industrial Relations (IR) Use of data in the teachers payroll data warehouse by IR. Ensuring ad-hoc access by IR to data in production payroll system when data required cannot be provided through the data warehouse. IR providing ad-hoc advice to the project around payroll operational policy issues. IR reviewing key requirements documents relating to implementation of payroll rules and providing feedback. Schools Payroll Project (Transition Project) helping IR understand how rules can be implemented in the new payroll systems in preparation for the new bargaining rounds. Version 0.3 DRAFT 39 of 88 Ministry of Education 2008

12 Ministry Area Dependencies Project Initiation Document Schools Payroll Transition Project Internal Audit (IAG) Engaging IAG in the project. Schools Payroll Project (Transition Project) outlining the control environment that will be implemented and IAG commenting on the adequacy of the controls proposed and identifying any risks regarding the systems and processes implemented by the new vendor. Legal Payroll and collective legal advice. Review and approve Service Schedules for ESP contract. 9.4 Planning Assumptions The following are the Transition Project planning assumptions: The ESP contract defines the scope of the Talent2 transition services. The Ministry will not manage any third parties engaged by Talent2. All Ministry and Talent2 project resources will be recruited and have the appropriate skills and capabilities to complete the activities they are assigned to. A significant percentage of the project staff will be experienced with the Talent2 Alesco product and Remedy system. Access to ESP payroll experts will occur as needed. Some Datacom documentation is required for the Transition Project and the Ministry may have to fund updating or developing this documentation. Required schools payroll representatives will be available when and as they are needed. Chapman Tripp will provide legal services for the project. A "full-time" resource implies at least 35 hours productive work per week. The budget figures used in preparing the Ministry estimates are accurate within 10%. Backfilling ESP payroll experts will be required. The contingency budget for the Transition Project will be available if required. The project scope does not include funding any ESP projects not specifically inscope of this PID. The Secretary of Education or delegate has authority to approve variations to the ESP contract, excluding any variations to the approved appropriation by Cabinet. Version 0.3 DRAFT 40 of 88 Ministry of Education 2008

13 Project Initiation Document Schools Payroll Transition Project 9.5 Project Plan Project-Level Gantt Chart The primary project plan summary of the overall project timeline for Talent2 to deliver transition services in the ESP contract is shown in the table following. Figure 1 Summary of Transition Project Plan for Talent2 to deliver transition services in the ESP contract Version 0.3 DRAFT 41 of 88 Ministry of Education 2008

14 Project Initiation Document Schools Payroll Transition Project A summary of the overall project timeline for the subsidiary Ministry Project Plan to implement processes and systems that improve Ministry processes and manage the ESP contract is shown in the table following. Note that the primary project plan is currently being updated to reflect these Transition Project Stages and the management products. Figure 2 Summary of Ministry Transition Project Plan to implement processes and systems that improve Ministry processes and manage the ESP contract Version 0.3 DRAFT 42 of 88 Ministry of Education 2008

15 Project Initiation Document Schools Payroll Transition Project Project Level Product Breakdown Structure The following diagram illustrates the Talent2 related specialist product breakdown structure to deliver the transition services in the ESP contract. Version 0.3 DRAFT 43 of 88 Ministry of Education 2008

16 Project Initiation Document Schools Payroll Transition Project The following diagram illustrates the product breakdown structure for the Ministry specialist products to deliver transition services in the ESP contract. Version 0.3 DRAFT 44 of 88 Ministry of Education 2008

17 Project Initiation Document Schools Payroll Transition Project The following diagram illustrates the product breakdown structure for the Ministry management products. Version 0.3 DRAFT 45 of 88 Ministry of Education 2008

18 Project Initiation Document Schools Payroll Transition Project Project-Level Product Flow Diagrams The product flows are included in the critical path of the two Transition Project plans Project-Level Product Descriptions The following tables details the high level project products. No. Assembled Product Groups Product Group Description 1. Talent2 specialist products 2. Data cleaning This set of products will analyse and clean the existing payroll data. The products include project management, updating existing payroll system, and receiving information for schools support staff. Products include: Plan Data Cleaning Complete Data Cleaning 3. Testing This set of products will prepare and conduct testing for the IT systems. Products include: Testing Preparation Prepare Clean Lifecycle Testing Environment Conduct Lifecycle Testing 4. Custom Work This set of products will deliver the Ministry s requirements that are not part of the Talent2 core system. Products include: Processes Systems Interfaces Reports 5. Configuration This set of products will review and update the existing solutions design documents and configure the Talent2 core payroll system. Products Include: Project Team Familiarisation Confirm Solution Design Configuration HR Admin Configuration for Pay and Leave Security Configuration Test and refine Configuration 6. Hosting (Data Centre Set-up) This set of products will establish the required technical environments for the hardware and software. Products include: Prepare Requirements Establish Technical Environment Build and set-up Data Centre Environment Version 0.3 DRAFT 46 of 88 Ministry of Education 2008

19 Project Initiation Document Schools Payroll Transition Project No. Assembled Product Groups Product Group Description 7. Service Centre Transition This set of products will secure the Service Centre premises in Christchurch and Auckland, recruit the staff, and configure the Remedy service desk system. Products include: Service Centre Infrastructure Setup Service Centre People Transition/training etc. Configure Remedy System 8. Change Management This set of products will manage the change related activities for the project. Products include: Communications User Documentation (payroll and service support) Training 9. Data Migration This set of products will migrate the data from Datacom s payroll systems to Talent2 s payroll system. Products include: Data Map Build Position Structure Build Transition Tables Identify transformation requirements Develop controls Develop and unit test extract & transformation scripts Test upload process 10. Christchurch Production Roll-out This set of products will prepare and rollout the Christchurch Payroll Centre. Products include: Christchurch Production Preparation Christchurch Production Cutover Plan Christchurch Go Live Christchurch Post Go Live activities 11. Auckland Production Roll-out This set of products will prepare and rollout the Auckland Payroll Centre. Products include: Auckland Production Preparation Auckland Production Cutover Plan Auckland Go Live Auckland Post Go Live activities 12. Business Continuity Planning This set of products will define and test the Business Continuity Planning. Products include: Define BCP Plan Test BCP Plan Version 0.3 DRAFT 47 of 88 Ministry of Education 2008

20 Project Initiation Document Schools Payroll Transition Project No. Assembled Product Groups Product Group Description 13. Service Delivery This set of processes will work with the Ministry to establish the contract management processes for the on-going payroll operations. Products include: Develop ESP O/S Contract Develop Service Delivery Process No. Assembled Product Groups Product Group Description 20. Ministry Specialist Products 21. Other Ministry Processes This set of products identifies the processes the Ministry will need to define or re-engineer. Products include: Finance processes Service Delivery Processes Datacom documentation 22. Datacom processes This set of products allows for any existing Datacom documentation that the Transition Project will need to create or update. Products include: Document relevant Datacom processes 23. Document Management This set of products defines and implements a document management process. Products include: Define Document Management Process requirements Implement recommended solution 24. Service Support This set of processes defines the ESP Team support processes that deliver specific payroll information to Talent2. Products include: 3 rd level Support Processes 25. Service Delivery This set of processes establishes the governance and contract management processes for the ongoing payroll operations. Products include: Develop ESP O/S Contract Schedules Develop Service Delivery Process Set-up on-going Governance No. Products Product Description 50 Management Products 51 Plans 51.1 Project Plan Plan that covers the period of the project. There are two plans, one for Talent2, and one for the Ministry Exception Plan Plan that often follows an Exception Report. For a Stage Plan Exception, it covers the period from the present to the end of the current stage. If the exception were at a project level, the Project Plan would be replaced Version 0.3 DRAFT 48 of 88 Ministry of Education 2008

21 Project Initiation Document Schools Payroll Transition Project No. Products Product Description 51.3 Stage Plan Plan for each key stage of the Transition Project. The plan shows all of the products to be developed during that Stage. It reflects all activities and tasks in the Project Plans. It is the basis for the Project Manager to control the project during the Stage. The document is updated with progress against the plan, as the Stage progresses Post-Project Review Plan A report given by the Project Manager to the Project Board defines how and when a measurement of the achievement of the project benefits can be made. 52 Reports 52.1 End Project Report A report given by the Project Manager to the Project Board that confirms the handover of all products and provides an updated Business Case and an assessment of how well the project has done against its Project Initiation Document End Stage Report A report given by the Project Manager to the Project Board at the end of each management stage of the project. This provides information about the project performance during the stage and the project status at stage end Highlight Report Monthly report from the Project Manager to the Project Board on stage progress Check Point Report A progress report of the information gathered at a checkpoint meeting which is given by a team to the Project Manager and provides reporting data as defined in the Work Package Lesson Learned Report A report that describes the lessons learned in undertaking the project and includes statistics from the quality control of the project s management products Follow Up Actions Report A report that can be used as input to the process of creating a Business Case/Project Mandate for any follow-on and for recording any follow-on instructions covering incomplete products or outstanding Project Issues Exception Report Description of the exception situation, its impact, options, recommendation and impact of the recommendation to the Project Board. 53 Project Organisation Structure This product is the organisation charts, roles and responsibilities for the Transition Project. These are documented in the PID. 54 Controls 54.1 Communications Plan Part of the Project Initiation Document describing how the project s Stakeholders and interested parties will be kept informed during the project Project Initiation Document This document will form the basis of the management of the Transition Project and the basis for assessing the overall success. The PID will be updated, if required, to reflect changes to scope or management requirements during the life of the project. Version 0.3 DRAFT 49 of 88 Ministry of Education 2008

22 Project Initiation Document Schools Payroll Transition Project No. Products Product Description 54.4 Project Brief This product will not be developed because Cabinet approval for the Transition Project has been received Work Package The set of information relevant to the creation of one or more products. It will contain a description of the work, the Product Description(s), details of any constraints on production such as time and cost, interfaces, and confirmation of the agreement between the Project Manager and the Team Manager who is to implement the Work Package that the work can be done within the constraints Risk Log Contains all information about the risks, their analysis, countermeasures and status Lessons Learned Log An informal collection of good and bad lessons learned about the management and specialist processes and products as the project progresses Assumptions Register Contains all assumptions that will be considered true, real, or certain for planning purposes. 55 Quality Products 55.1 Project Quality Plan A plan defining the key quality criteria, quality control and audit processes to be applied to project management and specialist work in the project. It is part of the text in the Project Initiation Document Customer Quality Expectations Acceptance Criteria A prioritised list of criteria that the final product must meet before the customer will accept them 55.2 Quality Inspection Products Quality Log Contains all planned and completed quality activities Project Issue Documents Issue Log Contains all Project Issues including Requests for Change raised during the project Project Issue A term used to cover any concern, query, Request for Change, suggestion or Off- Specification raised during the project Off Specification Something that should be provided by the project, but currently is not (or is forecast not to be) provided. This might be a missing product or a product not meeting its specifications. It is one type of Project Issue Request for Change A means of proposing a modification to the current specification of a product. It is one type of Project Issue Change Control Register Contains all controlled Requests for Change, including submission, analysis and decision making Configuration Products Product Description A description of a product s purpose, composition, derivation and quality criteria Configuration Item Record Log The configuration item records are the master records to show what the current status is of any of the products or deliverables during the life of the project. Version 0.3 DRAFT 50 of 88 Ministry of Education 2008

23 Project Initiation Document Schools Payroll Transition Project No. Products Product Description Configuration Management Plan A plan that provides details of the measures to be taken if a defined risk should occur. The plan is only implemented if the risk occurs Product Status Account A report on the status of products Product Checklist A list of the major products of a plan, plus key dates in their delivery st Stage Product Descriptions The following tables details the products in the first Transition Project stage. Please refer to the 1st Stage Plan School s Payroll Transition Project for further information. No. Products Product Description 8.11 Prepare Communications Plan Talent2 will manage and undertake the change management workstream (with the input and participation from the Ministry as contemplated by the Requirements and the Baseline Transition Project plan). This product under the Change Management workstream delivers a plan on how Stakeholders will be communicated with and the mechanisms, policies, and approaches Implement Communications Plan Talent2 will manage and undertake the change management workstream (with the input and participation from the Ministry as contemplated by the Requirements and the Baseline Transition Project plan). This product under the Change Management workstream implements the communications plan defined in product description SPPPD Project Team Familiarisation Talent 2 will conduct familiarisation activities for the Ministry staff. These activities will include overview of the Alesco systems, basic payroll training, risk review workshop, and team building activity. 5.2 Confirm Solutions Design Talent2, with assistance from the Ministry will review and update the solution design to be in line with the requirements. The configuration will be undertaken on the basis of a signed solution design. As part of this configuration activity, solution design will be documented, confirmed and signed off. 2.1 Plan Data Cleansing The Ministry will manage and undertake the data cleaning workstream (as contemplated by the Baseline Transition Project plan). This product under the Data Cleaning workstream delivers a plan on how the data cleaning will be completed. 9.1 Data Map Talent2 will manage and undertake the data mapping workstream (as contemplated by the Baseline Transition Project plan). This product under the Data Migration workstream delivers the overall mapping from the Datacom TM4 systems to the Talent2 Alesco system. Version 0.3 DRAFT 51 of 88 Ministry of Education 2008

24 Project Initiation Document Schools Payroll Transition Project No. Products Product Description 21.1 Ministry - Finance processes The Ministry will manage and undertake the Other Ministry Processes workstream. This product under the Other Ministry Processes workstream delivers the design of the new finance payroll processes that: are automated to a level of good industry practice realise benefits for Finance and SPP, and are consistent with the new functionality delivered by the provider for the new schools payroll arrangements Document relevant Datacom Processes This product under the Datacom Processes workstream delivers existing up to date Datacom documents that are required for the Transition Project. Further analysis may identify that this product is not required at all. Documents that may be delivered are: Site Procedures Manual Overpayments Manual ACC Manual Procedures for Document Management of Manuals All Internal business processes around contract Project Financial Budget Ministry The following table details the Ministry Transition Project costs. Cost Item FTE 2008/ / /11 Ongoing Management Staff (Whole Project) Project Manager Until June 2011 Admin 50% of admin - job share with e- admin Project Analyst Business Transition Manager Part time consultant until end of CY 2010 Subject Matter Experts (Whole Project) ESP Mgr Seconded SME SME SME Datacom Techie Business Consultant Data Cleansing (18 months) ESP Data TL Data temps Data contractor Non-teaching leave Testing Test Manager Tester/SME Version 0.3 DRAFT ESP Secondee From pay centres/esp/espc/recruited From pay centres/esp/espc/recruited From pay centres/esp/espc/recruited XXXX/hr for 30 months (half time) XXXX/hr for 3 months Based on secondee - 2 years XXX/hr (37.5hr week) for 18mths XXXX/hr for 24 months (half time) Estimate - Datacom to be contracted Occurs Oct 09 to Feb 10 (6 mths) XXXX/hr for 9 months (half time) XXX per hour for 6 months 52 of 88 Ministry of Education 2008

25 Project Initiation Document Schools Payroll Transition Project Cost Item Testing Space & facilities Change Management Communications manager Communications consulting Training logistics admin Temporary 0800 Number MoE Staff training Project Team Misc Costs Implementation Overheads Implementation IQA Independent Quality Assurance Corporate Overheads Add'l lease for testing / parallel runs Full time from CY2009 to end of CY2010 XXX per hour for 2 months training / development CHCH imple & AKLD imple. XXX /mth 2yrs overheads / facilities / travel CHCH imple & AKLD imple. XXX /mth 2yrs XXX per month. Calculation based on current XXXXpa Std overhead per person (calc) FTE 2008/ / /11 Contingency Total Operating Expenditure Adjusted for risk C. COST SUMMARY Other Implementation Costs to Ministry Project Integration & Admin External QA Communications & Change Management Project Team Costs Contingency Version 0.3 DRAFT 53 of 88 Ministry of Education 2008

26 Project Initiation Document Schools Payroll Transition Project Project Financial Budget Talent2 Please refer to Transition Project Payments to Talent2 supporting document Project Contingency Please refer to Financial Management in this document for the Transition Project contingency Project Resources Please refer to Project Organisation Structure in this document for the Transition Project resources Requested/Assigned Specific Resources Please refer to Project Roles and Responsibilities in this document for the Transition Project resource assignments Project level Tolerances Please refer to Project Tolerances in this document for the Transition Project tolerances. Version 0.3 DRAFT 54 of 88 Ministry of Education 2008

27 Project Initiation Document Schools Transition Project (aka Novopay Project) 9. Initial Project Plan 9.1. Plan Description The purpose of the Transition Project Plan scope is to move from the current Datacom Education Service Payroll environment to the new Talent2 Education Service Payroll environment. The scope of the initial Transition Project Plan is to: set up the Service Desk and Payroll Centres deliver new business processes, including training Ministry staff and schools payroll support staff implement and host a modern payroll system or systems receive a data extract from the existing IT system, transform, clean and load data into the new payroll system or systems define and implement new service support and service delivery processes, including supporting IT systems Project Pre-requisites The contract agreed with Talent2 requires a replanning phase to be completed by 31 May 2010 and a re-baselined Transition plan for commencement on 1 June For this to occur, effort is required in the key areas of: the project plan stage plans and product descriptions resources and infrastructure transition of current vendor communications 9.3. External Dependencies The Transition Project has a number of dependencies with areas within the Ministry. The Transition Establishment Project has agreed Memorandum of Understandings with the Ministry areas, excluding Legal and Executive Communications who provide the services as part of their normal business practices. The following table identifies these areas and the dependencies the project has. Ministry Area Dependencies IT Group Providing oversight and advice from the CIO through the Project Board Providing user acceptance testing services to the schools payroll processing. Providing the New Zealand Education Sector Authentication and Authorisation shared service (ESAA) and authentication platform. Advising the project how to implement and operate ESAA. Advising of document management strategy and IT solution for the Ministry. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 34 of 90 Ministry of Education 2008

28 Ministry Area Delivery & Determination (D&D) Dependencies Project Initiation Document Schools Transition Project (aka Novopay Project) The data feed from the payroll system to the payroll data warehouse operated by DM&A that provides data used by D&D. The data file provided by STEER (currently the Wednesday of the pay-run) to Schools Payroll that enables the Banking Staffing Report to be produced and sent to schools. Consultation with D&D staff regarding the STEER interface file. Consultation with D&D staff regarding sick leave processing. DM&A The data feed from the payroll system to the payroll data warehouse operated by DM&A. Consultation with DM&A staff regarding how the data feed to the data warehouse will operate. Potential additional data teacher registration, qualifications/ethnicity, leave information. Executive Advice and assistance regarding communications strategy and Communications planning, and risk management. Finance Consultation with Finance staff regarding the finance payroll processes. Implementing the finance payroll processes that interact with the provider for the new schools payroll arrangements, schools, and external agencies. Industrial Relations (IR) Use of data in the teachers payroll data warehouse by IR. Ensuring ad-hoc access by IR to data in production payroll system when data required cannot be provided through the data warehouse. IR providing ad-hoc advice to the project around payroll operational policy issues. IR reviewing key requirements documents relating to implementation of payroll rules and providing feedback. Schools Payroll Project (Transition Project) helping IR understand how rules can be implemented in the new payroll systems in preparation for the new bargaining rounds. Internal Audit (IAG) Engaging IAG in the project. Schools Payroll Project (Transition Project) outlining the control environment that will be implemented and IAG commenting on the adequacy of the controls proposed and identifying any risks regarding the systems and processes implemented by the new vendor. Legal Payroll and collective legal advice. Review and approve Service Schedules for ESP contract Planning Assumptions The following are the Transition Project planning assumptions: The ESP contract defines the scope of the Talent2 transition services. The Ministry will not manage any third parties engaged by Talent2. All Ministry and Talent2 project resources will be recruited and have the appropriate skills and capabilities to complete the activities they are assigned to. A significant percentage of the project staff will be experienced with the Talent2 Alesco product and Numara Footprints system. Access to ESP payroll experts will occur as needed. Some Datacom documentation is required for the Transition Project and the Ministry may have to fund updating or developing this documentation. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 35 of 90 Ministry of Education 2008

29 Project Initiation Document Schools Transition Project (aka Novopay Project) Required schools payroll representatives will be available when and as they are needed. Chapman Tripp will provide legal services for the project. A "full-time" resource implies at least 35 hours productive work per week. The budget figures used in preparing the Ministry estimates are accurate within 10%. Backfilling ESP payroll experts will be required. The contingency budget for the Transition Project will be available if required. The project scope does not include funding any ESP projects not specifically inscope of this PID. The Secretary of Education or delegate has authority to approve variations to the ESP contract, excluding any variations to the approved appropriation by Cabinet. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 36 of 90 Ministry of Education 2008

30 Project Initiation Document Schools Payroll Transition Projec 9.5. Project Plan Project-Level Gantt Chart The primary project plan summary of the overall project timeline to deliver transition services in the ESP contract is shown below: Figure 1 Summary of Transition Project Plan to deliver transition services in the ESP contract Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 37 of 90 Ministry of Education 2008

31 Project Initiation Document Schools Payroll Transition Project Project Level Product Breakdown Structure The following diagrams illustrate the update Product Breakdown Structure for Talent2 Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 38 of 90 Ministry of Education 2008

32 Project Initiation Document Schools Payroll Transition Project Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 39 of 90 Ministry of Education 2008

33 Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 40 of 90 Ministry of Education 2008 Project Initiation Document Schools Payroll Transition Project

34 Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 41 of 90 Ministry of Education 2008 Project Initiation Document Schools Payroll Transition Project

35 Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 42 of 90 Ministry of Education 2008 Project Initiation Document Schools Payroll Transition Project

36 Project Initiation Document Schools Payroll Transition Project The following diagram illustrates the product breakdown structure for the Ministry specialist products to deliver transition services in the ESP contract. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 43 of 90 Ministry of Education 2008

37 Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 44 of 90 Ministry of Education 2008 Project Initiation Document Schools Payroll Transition Project

38 Project Initiation Document Schools Payroll Transition Project The following diagram illustrates the product breakdown structure for the Ministry management products. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 45 of 90 Ministry of Education 2008

39 Project Initiation Document Schools Payroll Project Project-Level Product Flow Diagrams The product flows are included in the critical path of the Transition Project plan Project-Level Product Descriptions The following tables details the high level project products. No. Assembled Product Groups Product Group Description Talent2 specialist products RP3 Testing This set of products will prepare and conduct testing for the IT systems. This will cover Testing Strategy, Defect Management Application, System Testing and UAT. RP4 Custom Work This set of products will deliver the Ministry s requirements that are not part of the Talent2 core system. This includes all agreed Custom Work, and Custom Work agreed via Change Control. RP4.2 Interfaces This set of products will deliver the functionality for the System Interfaces. RP5 Configuration This set of products will review and update the existing solutions design documents and configure the Talent2 core payroll system. This also includes the ongoing maintenance of Core Configuration through to Go Live, once the base lined core configuration has been established. RP6 Hosting (Data Centre Set-up) This set of products will establish the required technical environments for the hardware and software within the NZ Data Centres (located at Tawa and Albany). RP7 Service Centre Transition This set of products will secure the Service Centre premises in Christchurch and Auckland, recruit the staff, and configure the Numara Footprints service desk system. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 46 of 90 Ministry of Education 2008

40 Project Initiation Document Schools Payroll Project No. Assembled Product Groups Product Group Description RP8 Change Management This set of products will manage the change related activities for the project. Products include: Communications User Documentation (payroll and service support) Training Engagement with Third Parties Establishment of the website Sourcing details and establishing the Authorised Users in Schools for Novopay Online and Numara Footprints. RP9 Data Migration This set of products will migrate the data from Datacom s payroll systems to Talent2 s payroll system. This includes the ongoing Data Cleansing Activities being undertaken by the Ministry. RP10 Production Roll-out This set of products will prepare and rollout the Payroll Service and will include Parallel Run & Pilot Activities, Go Live and Post Go-Live Support. RP12 Business Continuity Planning This set of products will define and test the Business Continuity Planning. RP14 Project Technical This set of products will deliver and manage the Infrastructure technical infrastructure of the project including development and test environments (outside of Data Centre). Environment Access and Back-up and the Alesco and any related software required by the project team. No. Assembled Product Groups Product Group Description 20. Ministry Specialist Products 21. Other Ministry Processes This set of products identifies the processes the Ministry will need to define or re-engineer. Products include: Finance processes Service Delivery Processes Datacom documentation 22. Datacom processes This set of products allows for any existing Datacom documentation that the Transition Project will need to create or update. Products include: Document relevant Datacom processes Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 47 of 90 Ministry of Education 2008

41 Project Initiation Document Schools Payroll Project No. Assembled Product Groups Product Group Description 23. Document Management This set of products defines and implements a document management process. Products include: Define Document Management Process requirements Implement recommended solution 24. Service Support This set of processes defines the ESP Team support processes that deliver specific payroll information to Talent2. Products include: 3 rd level Support Processes 25. Service Delivery This set of processes establishes the governance and contract management processes for the ongoing payroll operations. Products include: Develop ESP O/S Contract Schedules Develop Service Delivery Process Set-up on-going Governance No. Products Product Description 50 Management Products 51 Plans 51.1 Project Plan Plan that covers the period of the project. There are two plans, one for Talent2, and one for the Ministry Exception Plan Plan that often follows an Exception Report. For a Stage Plan Exception, it covers the period from the present to the end of the current stage. If the exception were at a project level, the Project Plan would be replaced 51.3 Stage Plan Plan for each key stage of the Transition Project. The plan shows all of the products to be developed during that Stage. It reflects all activities and tasks in the Project Plans. It is the basis for the Project Manager to control the project during the Stage. The document is updated with progress against the plan, as the Stage progresses Post-Project Review Plan A report given by the Project Manager to the Project Board defines how and when a measurement of the achievement of the project benefits can be made. 52 Reports 52.1 End Project Report A report given by the Project Manager to the Project Board that confirms the handover of all products and provides an updated Business Case and an assessment of how well the project has done against its Project Initiation Document. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 48 of 90 Ministry of Education 2008

42 Project Initiation Document Schools Payroll Project No. Products Product Description 52.2 End Stage Report A report given by the Project Manager to the Project Board at the end of each management stage of the project. This provides information about the project performance during the stage and the project status at stage end Highlight Report Monthly report from the Project Manager to the Project Board on stage progress Check Point Report A progress report of the information gathered at a checkpoint meeting which is given by a team to the Project Manager and provides reporting data as defined in the Work Package Lesson Learned Report A report that describes the lessons learned in undertaking the project and includes statistics from the quality control of the project s management products Follow Up Actions Report A report that can be used as input to the process of creating a Business Case/Project Mandate for any follow-on and for recording any follow-on instructions covering incomplete products or outstanding Project Issues Exception Report Description of the exception situation, its impact, options, recommendation and impact of the recommendation to the Project Board. 53 Project Organisation Structure This product is the organisation charts, roles and responsibilities for the Transition Project. These are documented in the PID. 54 Controls 54.1 Communications Plan Part of the Project Initiation Document describing how the project s Stakeholders and interested parties will be kept informed during the project Project Initiation Document This document will form the basis of the management of the Transition Project and the basis for assessing the overall success. The PID will be updated, if required, to reflect changes to scope or management requirements during the life of the project Project Brief This product will not be developed because Cabinet approval for the Transition Project has been received Work Package The set of information relevant to the creation of one or more products. It will contain a description of the work, the Product Description(s), details of any constraints on production such as time and cost, interfaces, and confirmation of the agreement between the Project Manager and the Team Manager who is to implement the Work Package that the work can be done within the constraints Risk Log Contains all information about the risks, their analysis, countermeasures and status Lessons Learned Log An informal collection of good and bad lessons learned about the management and specialist processes and products as the project progresses Assumptions Register Contains all assumptions that will be considered true, real, or certain for planning purposes. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 49 of 90 Ministry of Education 2008

43 Project Initiation Document Schools Payroll Project No. Products Product Description 55 Quality Products 55.1 Project Quality Plan A plan defining the key quality criteria, quality control and audit processes to be applied to project management and specialist work in the project. It is part of the text in the Project Initiation Document Customer Quality Expectations Acceptance Criteria A prioritised list of criteria that the final product must meet before the customer will accept them 55.2 Quality Inspection Products Quality Log Contains all planned and completed quality activities Project Issue Documents Issue Log Contains all Project Issues including Requests for Change raised during the project Project Issue A term used to cover any concern, query, Request for Change, suggestion or Off- Specification raised during the project Off Specification Something that should be provided by the project, but currently is not (or is forecast not to be) provided. This might be a missing product or a product not meeting its specifications. It is one type of Project Issue Request for Change A means of proposing a modification to the current specification of a product. It is one type of Project Issue Change Control Register Contains all controlled Requests for Change, including submission, analysis and decision making Configuration Products Product Description A description of a product s purpose, composition, derivation and quality criteria Configuration Item Record Log The configuration item records are the master records to show what the current status is of any of the products or deliverables during the life of the project Configuration Management Plan A plan that provides details of the measures to be taken if a defined risk should occur. The plan is only implemented if the risk occurs Product Status Account A report on the status of products Product Checklist A list of the major products of a plan, plus key dates in their delivery. Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 50 of 90 Ministry of Education 2008

44 Project Initiation Document Schools Payroll Project Project Financial Budget Ministry The following table details the Ministry Transition Project costs. FY08-09 FY09-10 FY10-11 FY11-12 Total IMPLEMENTATION Talent2 Ministry Contingency TOTAL OPERATION Talent2 Datacom Ministry BAU Contingency TOTAL OVERALL TOTAL BUDGETED OPEX Quantitative Risk Analysis Contingency APPROPRIATED OPEX Project Financial Budget Talent2 Please refer to Transition Project Payments to Talent2 supporting document below. Date or Milestone (as applicable) for invoicing Invoice Amount (excluding GST) 5 June July August September 2010 System Testing Complete* 5 October November December 2010 Lifecycle Testing Complete* 5 January February March April May June 2011 Go Live* Novopay Project Initiation Document - May 2010 (v1-13).doc 22/11/12 9:22:27 AM 51 of 90 Ministry of Education 2008

45 6 Project Planning 6.1 Plan Description The purpose of the Novopay Project Plan scope is to move from the current Datacom Education Service Payroll environment to the new Talent2 Education Service Payroll environment. The scope of the initial Novopay Project Plan is to: Set up the Service Desk and Payroll Centres Deliver new business processes, including training Ministry staff and schools payroll support staff Implement and host a modern payroll system or systems Receive a data extract from the existing IT system, transform, clean and load data into the new payroll system or systems Define and implement new service support and service delivery processes, including supporting IT systems. 6.2 Project Pre-Requisites Variation Contract 2 agreed with Talent2 required a replanning phase. The Project Board endorsed the November 2011 baseline project plan at the 10 November 2011 Project Board meeting. 6.3 External Dependencies The Novopay Project has a number of dependencies with areas within the Ministry. The Novopay Establishment Project has agreed Memorandums of Understanding with the Ministry areas, excluding Legal and Executive Communications who provide the services as part of their normal business practices. The following table identifies these areas and the dependencies of the Novopay Project. TABLE 9: NOVOPAY PROJECT AREA DEPENDENCIES Ministry Area Dependencies IT Group Providing oversight and advice from the CIO through the Novopay Project Board. Providing user acceptance testing services to the schools payroll processing. The provision and support of ESIS. Advising of document management strategy and IT solution for the Ministry. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 42 22/11/2012 9:33 a.m.

46 Ministry Area Dependencies Delivery & Determination (D&D) The data feed from the payroll system to the payroll data warehouse operated by DM&A that provides data used by D&D. The data file provided by STEER (currently the Wednesday of the pay-run) to schools payroll that enables the Banking Staffing Report to be produced and sent to schools. Consultation with D&D staff regarding the STEER interface file. Consultation with D&D staff regarding sick leave processing. Education Information and Analysis The data feed from the payroll system to the payroll data warehouse operated by Education Information and Analysis. Consultation with Education Information and Analysis staff regarding how the data feed to the data warehouse will operate. Potential additional data teacher registration, qualifications/ethnicity, leave information. Executive Communications Advice and assistance regarding communications strategy and planning, and risk management. Finance Consultation with Finance staff regarding the finance payroll processes. Implementing the finance payroll processes that interact with the provider for the new schools payroll arrangements, schools, and external agencies. Industrial Relations (IR) Use of data in the teachers payroll data warehouse by IR. Ensuring ad-hoc access by IR to data in production payroll system when data required cannot be provided through the data warehouse. IR providing ad-hoc advice to the Novopay Project around payroll operational policy issues. IR reviewing key requirements documents relating to implementation of payroll rules and providing feedback. Novopay Project helping IR understand how rules can be implemented in the new payroll systems in preparation for the new bargaining rounds. Internal Audit (IAG) Engaging IAG in the Novopay Project. Novopay Project outlining the control environment that will be implemented and IAG commenting on the adequacy of the controls proposed and identifying any risks regarding the systems and processes implemented by the new vendor. Legal Payroll and collective legal advice. Review and approve Service Schedules for ESP contract. 6.4 Planning Assumptions The following are the Novopay Project planning assumptions: Novopay Project Initiation Document - Dec 2011 (v2-18).docx 43 22/11/2012 9:33 a.m.

47 The ESP contract defines the scope of the Talent2 transition services (Schedule 4 [Transition] and Schedule 4A [New Transition Provisions]). The Ministry will not manage any third parties engaged by Talent2. All Ministry and Talent2 Novopay Project Personnel will be recruited and have the appropriate skills and capabilities to complete the activities they are assigned to (clauses 10.2 and 10.9 of the ESP contract). A significant percentage of the Novopay Project Personnel will be experienced with the Talent2 Alesco product and Numara Footprints system. Access to ESP payroll experts will occur as needed. Some Datacom documentation is required for the Novopay Project and the Ministry may have to fund updating or developing this documentation. Required schools payroll representatives will be available when and as they are needed. Chapman Tripp will provide legal services for the Novopay Project. A "full-time" resource implies at least 35 hours productive work per week. The budget figures used in preparing the Ministry estimates are accurate within 10%. Backfilling ESP payroll experts will be required. The contingency budget for the Novopay Project will be available if required. The Novopay Project scope does not include funding any ESP projects not specifically in-scope of the ESP contract or this PID. The Secretary of Education or delegate has authority to approve variations to the ESP contract, excluding any variations to the approved appropriation by Cabinet. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 44 22/11/2012 9:33 a.m.

48 6.5 Proposed Project Plan: Agreed Go Live Date Project-Level Gantt Chart The following diagram shows the primary Project Plan summary of the overall project timeline to deliver transition services in the ESP contract. ID Task Name Duration Start Finish Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q14 0 Novopay Consolidated Schedule v47 8 November d Fri 1/01/10 Tue 14/08/ Project Establishment 219 d Mon 20/12/10 Wed 9/11/ Completed Establishment Tasks 49.5 d Mon 20/12/10 Fri 11/03/ Finalise PID 188 d Tue 15/02/11 Wed 9/11/ Project Establishment Completed 0 d Wed 9/11/11 Wed 9/11/ Elaboration 259 d Mon 10/01/11 Thu 26/01/ FDS Pre 7 Sept Stream 170 d Mon 10/01/11 Wed 7/09/ FDS Elaboration Pre 7 Sept Completed 0 d Wed 7/09/11 Wed 7/09/ Elaboration Contract Milestone 0 d Wed 7/09/11 Wed 7/09/ FDS Post 7 Sept 91 d Tue 6/09/11 Thu 26/01/ FDS Elaboration Stream Post 7 Sept Completed 0 d Thu 26/01/12 Thu 26/01/ Not Re-elaborated FDS's - Scoping of Risk 4.5 d Thu 3/11/11 Wed 9/11/ Elaboration Completed 0 d Thu 26/01/12 Thu 26/01/ Construction 345 d Tue 8/02/11 Mon 2/07/ MoE SME Consultation 67 d Tue 1/11/11 Fri 17/02/ FDS Construction 201 d Tue 8/02/11 Mon 21/11/ Construction Pre 7 Sept Completed 0 d Mon 21/11/11 Mon 21/11/ End of Stage Report Completed for the Steering Committee 5 d Mon 14/11/11 Fri 18/11/ Construction Contract Milestone 0 d Mon 21/11/11 Mon 21/11/ Post 7 Sept Releases 50 d Thu 24/11/11 Fri 17/02/ Construction Post 7 Sept Completed 0 d Fri 17/02/12 Fri 17/02/ Payroll Verification Check 224 d Mon 1/08/11 Mon 2/07/ Payroll Verification Completed 0 d Mon 2/07/12 Mon 2/07/ Retrospective Processing (FDS 72) 145 d Wed 5/10/11 Wed 16/05/ Construction for Retrospective Processing 145 d Wed 5/10/11 Wed 16/05/ Retrospective Testing 92 d Mon 19/12/11 Tue 15/05/ Retrospective Development Rework 10 d Tue 24/04/12 Tue 8/05/ Retrospective Processing Completed 0 d Wed 16/05/12 Wed 16/05/ Data and Configuration 464 d Mon 2/08/10 Fri 22/06/ Configuration Setup and Maintenance d Mon 2/08/10 Fri 6/01/ Historic Data 91 d Mon 5/09/11 Wed 25/01/ Leave Balances 55 d Wed 11/01/12 Thu 29/03/ Data Conversion 120 d Tue 13/12/11 Wed 20/06/ Novopay Online Available 0 d Wed 20/06/12 Wed 20/06/ First Pay Run 0 d Fri 22/06/12 Fri 22/06/ Data and Configuration Completed 0 d Wed 20/06/12 Wed 20/06/ Documentation 190 d Mon 1/08/11 Mon 14/05/ Paper Forms Review 28 d Thu 27/10/11 Mon 5/12/ T2 Finalise Documentation 190 d Mon 1/08/11 Mon 14/05/ Business Requirements Manual for MoE 10 d Fri 2/12/11 Thu 15/12/ Documentation Completed 0 d Mon 14/05/12 Mon 14/05/ /09 7/09 9/11 21/11 21/11 26/01 26/01 17/02 2/07 16/05 20/06 22/06 20/06 14/05 Novopay Project Initiation Document - Dec 2011 (v2-18).docx 45 22/11/2012 9:33 a.m.

49 ID Task Name Duration Start Finish Testing 344 d Mon 10/01/11 Wed 30/05/ Overheads 45 d Wed 19/10/11 Wed 21/12/ SIT Pre 7 Sept FDS d Mon 10/01/11 Wed 21/12/ SIT Pre 7 Sept Completed 0 d Wed 21/12/11 Wed 21/12/ SIT Test Summary Report Completed 0 d Wed 21/12/11 Wed 21/12/ End of Stage Report Completed for the Steering Committee & Board 5 d Tue 6/12/11 Mon 12/12/ SIT Contract Milestone 0 d Tue 13/12/11 Tue 13/12/ SIT Post 7 Sept FDS d Mon 3/10/11 Mon 26/03/ SIT Post 7 Sept Completed 0 d Mon 26/03/12 Mon 26/03/ Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 21/12 21/12 13/12 26/ Automation 230 d Tue 19/04/11 Tue 27/03/ Development Rework 168 d Wed 27/04/11 Tue 20/12/ Development Rework Pre 7 Sept Completed 0 d Tue 20/12/11 Tue 20/12/ End of Stage Report Completed for the Steering Committee & Board 5 d Wed 23/11/11 Tue 29/11/ Development Contract Milestone 0 d Wed 30/11/11 Wed 30/11/ Post 7 Sept Development Rework 173 d Fri 8/07/11 Fri 23/03/ Development Rework Post 7 Sept Completed 0 d Fri 23/03/12 Fri 23/03/ UAT 178 d Mon 1/08/11 Thu 26/04/ UAT Completed 0 d Thu 26/04/12 Thu 26/04/ End of Stage Report Completed for the Steering Committee & Board 5 d Thu 16/02/12 Wed 22/02/ UAT Contract Milestone 0 d Thu 23/02/12 Thu 23/02/ Other Testing 244 d Wed 1/06/11 Wed 30/05/ Testing Completed 0 d Wed 30/05/12 Wed 30/05/ /12 30/11 23/03 26/04 23/02 30/ Engagement 175 d Thu 22/09/11 Fri 15/06/ Stakeholder Management Analysis & Plans 170 d Thu 22/09/11 Fri 8/06/ Management of Audience/Contacts 153 d Mon 17/10/11 Fri 8/06/ Manage Stakeholder Specific Communications 143 d Tue 1/11/11 Fri 8/06/ Communications Delivery and Monitoring 163 d Mon 3/10/11 Fri 8/06/ Refine Communications Based on Feeback 115 d Tue 13/12/11 Tue 12/06/ Go Live Communications 106 d Mon 9/01/12 Tue 12/06/ Sector Readiness 144 d Mon 7/11/11 Fri 15/06/ Engagement Completed 0 d Fri 15/06/12 Fri 15/06/ / Business Change 612 d Fri 1/01/10 Tue 19/06/ MoE Business Change 605 d Fri 1/01/10 Thu 7/06/ T2 Business Processes 45 d Wed 14/09/11 Wed 16/11/ MoE Business Processes 405 d Mon 3/05/10 Thu 8/12/ End of Stage Report Completed for the Steering Committee & Board 5 d Tue 12/06/12 Mon 18/06/ Business Change Contract Milestone (MoE) 0 d Tue 19/06/12 Tue 19/06/ Business Change Completed 0 d Thu 7/06/12 Thu 7/06/12 19/06 7/ Service Readiness 193 d Mon 19/09/11 Fri 6/07/ Service Centre 161 d Thu 3/11/11 Fri 6/07/ Service Centre Recruitment 128 d Fri 21/10/11 Wed 9/05/ Testing Recruitment 153 d Mon 19/09/11 Thu 10/05/ End of Stage Report Completed for the Steering Committee & Board 5 d Mon 7/05/12 Fri 11/05/ Service Centre Contract Milestone 0 d Mon 14/05/12 Mon 14/05/ Service Centre Readiness Completed 0 d Fri 6/07/12 Fri 6/07/ Training 149 d Tue 25/10/11 Mon 11/06/12 14/05 6/ Develop Detailed Training Plan 48 d Tue 25/10/11 Thu 12/01/ Development of Training Material and Planning for Engagement 50 d Thu 5/01/12 Fri 16/03/ User Engagement and Training Delivery Preparation 62 d Fri 13/01/12 Fri 13/04/ Training Deployment 39 d Mon 16/04/12 Mon 11/06/ Training Completed 0 d Mon 11/06/12 Mon 11/06/12 11/ Transition and Go Live 162 d Thu 27/10/11 Tue 3/07/ Brown Outs 11 d Mon 9/01/12 Tue 24/01/ Audits 151 d Thu 27/10/11 Fri 15/06/ Approvals to Go Live 80 d Thu 19/01/12 Thu 17/05/ All go live approvals signed 0 d Thu 17/05/12 Thu 17/05/ Go Live (Working Towards 12 June 2012) 103 d Mon 9/01/12 Fri 8/06/ Go Live 0 d Fri 8/06/12 Fri 8/06/ Go Live Execution (Align to Pay Run date) 6 d Fri 8/06/12 Fri 15/06/ End of Stage Report Completed for the Steering Committee & Board 5 d Mon 18/06/12 Fri 22/06/ Go Live - Commence Live Running (Parallel Runs) Contract Milestone 0 d Mon 25/06/12 Mon 25/06/ End of Stage Report Completed for the Steering Committee & Board 5 d Tue 26/06/12 Mon 2/07/ Go Live Contract Milestone 0 d Tue 3/07/12 Tue 3/07/ Transition and Go Live Completed 0 d Fri 15/06/12 Fri 15/06/12 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 17/05 8/06 25/06 3/07 15/ Post Go Live 93 d Mon 2/04/12 Tue 14/08/ Critical Monitoring Period 48 d Fri 8/06/12 Tue 14/08/ Post Go Live FDS 89 d Mon 2/04/12 Wed 8/08/ Other Activities 35 d Mon 11/06/12 Fri 27/07/ Communications 33 d Mon 18/06/12 Wed 1/08/ Post Go Live Completed 0 d Tue 14/08/12 Tue 14/08/ / Project Management and Governance 183 d Thu 27/10/11 Tue 31/07/12 FIGURE 3: PROJECT TIMELINE SUMMARY - TRANSITION SERVICES DELIVERY (ESP CONTRACT) Novopay Project Initiation Document - Dec 2011 (v2-18).docx 46 22/11/2012 9:33 a.m.

50 6.5.2 Talent2 Specialist Products Specialist Products Flow Diagram The product flows are included in the critical path of the Novopay Project Plan. FIGURE 4: TALENT2 SPECIALIST PRODUCTS DIAGRAM Novopay Project Initiation Document - Dec 2011 (v2-18).docx 47 22/11/2012 9:33 a.m.

51 Specialist Products Descriptions The following tables detail the high level project products. TABLE 10: TALENT2 SPECIALIST PRODUCTS DESCRIPTIONS No. Product Groups Product Group Descriptions Talent2 Specialist Products 1 Elaboration Requirements 1.1 Functional Design Specification Review Review and categorisation of Functional Design Specifications to determine required elaboration. 1.2 Project Schedule Computer based Schedule of the tasks involved to complete the Novopay Project; this schedule includes the dates for start and completion of each task. 1.3 Business Requirement Specifications A structured collection of information that embodies the requirements of the Novopay System set out in a traceable format. 1.4 Functional Design Specification A structured document which describes the requested behaviour of the Novopay System by translating the requirements of the system into a solution design. 1.5 Technical Design Specification Technical Design Specifications describe how a functional design will be implemented in terms of technical components. 2 Construction 2.1 Constructed Code Structured programming code and pseudo code developed to implement the functional design. 2.2 Unit Testing Results The results of the tests on individual units of constructed code. 2.3 Reworked Code Reworked Code is programming code and pseudo code which has been changed from the original code because it was not functioning as required by Novopay Project Stakeholders. 3 Systems Integration Testing 3.1 SIT Test Plan A document detailing the systematic approach used to complete system integration testing for the Novopay System. 3.2 SIT Test Schedule A plan containing a detailed understanding of the system integration testing workflow and timeline. 3.3 SIT Test Scripts A documented set of instructions which will be performed on the Novopay System in order to test the functionality. 3.4 SIT Execution The process of completing the systems integration test. 3.5 SIT Test Results The feedback given on the system and the tests completed on the system. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 48 22/11/2012 9:33 a.m.

52 No. Product Groups Product Group Descriptions Talent2 Specialist Products 3.6 SIT Test Summary Report A report providing any important information uncovered by the tests completed, and including assessments of the quality of the testing effort, the quality of the software system under test, statistics derived from Incident Reports and an indication whether the Novopay system is fit for purpose according to whether or not it has met acceptance criteria defined by Novopay Project Stakeholders. 3.7 Payroll Verification Check A verification that the payroll system is installed and functioning as intended. 4 Service Centre Establishment & Testing 4.1 Wellington Fit Out A fit out of the Wellington premises in anticipation of the Go Live date. 4.2 Staff Recruited The completing of the recruitment process for new employees who will be deployed in the Service Centre(s). 4.3 Online Training Module A training module which has been designed to aid and support all relevant Stakeholders on the use the Novopay System. 4.4 Non-Functional Requirements Test Results The results of tests to determine the readiness of the payroll centre for Go Live. 5 Parallel Runs & Pilot 5.1 Acceptance Entry Criteria Criteria which have been decided upon by relevant Novopay Project Stakeholders to determine and measure the acceptance of the Novopay system with users. 5.2 Parallel Run Test Plan A document detailing the systematic approach used to complete parallel run test for the Novopay System. 5.3 Parallel Run Test Run and Results Results of the parallel run test which detail the differences between both systems and assess the results with the acceptance criteria. 5.4 Pilot Test Schedule A plan containing a detailed understanding of the pilot test workflow and timeline. 5.5 Non-Functional Requirements Review A review of the non-functional requirements and how they Novopay system meets those requirements. 5.6 Test Results Report A report on the results of the pilot test. 6 Change Management 6.1 Signed Business Processes The business processes which have been signed off by all relevant Stakeholders. 6.2 User Documentation Documentation detailing how the users are to operate the system including processes undertaken. 6.3 Novopay Website A website for the Novopay System. 7 Go Live 7.1 Go Live Plan A plan detailing the actions to be undertaken in a structured format which will be used as a guide for the go live process. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 49 22/11/2012 9:33 a.m.

53 No. Product Groups Product Group Descriptions Talent2 Specialist Products 7.2 Cut Over Plan A plan detailing decision checkpoints, communication streams, contingency plan, risk factors and a measure to guide the cutover process. 7.3 Existing system decommission plan A detailed plan which identifies the tasks required to shutdown and wrap-up the existing Datacom system. 7.4 Go Live The date which the Novopay system goes fully active so that its intended users can access it Ministry Specialist Products Descriptions Note: Ministry Products refers to naming conventions associated with existing document storage protocols. TABLE 11: MINISTRY SPECIALIST PRODUCTS No. Assembled Product Groups Product Group Description Ministry Specialist Products 20 Other Ministry Processes This set of products identifies the processes the Ministry will need to define or re-engineer. Products include: Finance processes, Service Delivery Processes, Datacom documentation. 21 Datacom processes This set of products allows for any existing Datacom documentation that the Novopay Project will need to create or update. Products include: document relevant Datacom processes. 22 Document Management This set of products defines and implements a document management process. Products include: Define Document Management Process requirements Implement recommended solution. 23 Service Support This set of processes defines the ESP Team support processes that deliver specific payroll information to Talent2. Products include: 3rd level Support Processes. 24 Service Delivery This set of processes establishes the governance and contract management processes for the ongoing payroll operations. Products include: 50 Management Products 51 Plans Develop ESP O/S Contract Schedules, Develop Service Delivery Process, Set-up on-going Governance. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 50 22/11/2012 9:33 a.m.

54 No. Assembled Product Groups Product Group Description Ministry Specialist Products 51.1 Novopay Project Plan Plan that covers the period of the Novopay Project. There is one high level plan that is shared by Talent2, and the Ministry. Sub-plans can be managed at the Team Leader level and updated into the main Project Plan Exception Plan Plan that often follows an Exception Report. For a Stage Plan Exception, it covers the period from the present to the end of the current stage. If the exception were at a project level, the Project Plan would be replaced Stage Plan Plan for each key stage of the Novopay Project. The plan shows all of the products to be developed during that stage. It reflects all activities and tasks in the Project Plans. It is the basis for the Ministry Transition Project Manager to control the Novopay Project during the stage. The document is updated with progress against the plan, as the stage progresses Post-Project Review Plan A report given by the Ministry Transition Project Manager to the Novopay Project Board defines how and when a measurement of the achievement of the Novopay Project benefits can be made. 51 Reports 52.1 End Project Report A report given by the Ministry Transition Project Manager to the Novopay Project Board that confirms the handover of all products and provides an updated Business Case and an assessment of how well the Novopay Project has done against the PID End Stage Report A report given by the Ministry Transition Project Manager to the Steering Committee at the end of each management stage of the Novopay Project. This provides information about the project performance during the stage and the project status at stage end Project Update Report Monthly report from the Ministry Transition Project Manager to the Novopay Project Board on stage progress. Also used for updating the Steering Committee Weekly Project Report A progress report of the information gathered at Team Leader meetings which is given by each team to the Ministry Transition Project Manager and provides reporting data as defined in the Work Package Lesson Learned Report A report that describes the lessons learned in undertaking the Novopay Project and includes statistics from the quality control of the Novopay Project s management products. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 51 22/11/2012 9:33 a.m.

55 No. Assembled Product Groups Product Group Description Ministry Specialist Products 52.6 Follow Up Actions Report A report that can be used as input to the process of creating a Business Case/Project Mandate for any follow-on and for recording any follow-on instructions covering incomplete products or outstanding Project Issues Exception Report Description of the exception situation, its impact, options, recommendation and impact of the recommendation to the Novopay Project Board. 53 Project Organisation Structure This product is the organisation chart, roles and responsibilities for the Novopay Project. These are documented in the PID. 54 Controls 54.1 Communications Plan Part of the PID describing how the Novopay Project s Stakeholders and interested parties will be kept informed during the Novopay Project PID This document will form the basis of the management of the Novopay Project and the basis for assessing the overall success. The PID will be updated, if required, to reflect changes to scope or management requirements during the life of the Novopay Project Project Management Products (with input from Talent2) Management Review A systematic evaluation of the Novopay Project and the implications for both Talent2 and the Ministry PWC Review Review(s) conducted by an external party in order to assess the Novopay Project Meeting Review Sign Off A sign off for the Management Review End of Stage Reports A set of reports which are used to give a summary of progress to date, the overall Novopay Project situation, and sufficient information to ask for a Novopay Project Board decision on what to do next with the Novopay Project Project Brief This product will not be developed because Cabinet approval for the Novopay Project has been received Work Package The set of information relevant to the creation of one or more products. It will contain a description of the work, the Product Description(s), details of any constraints on production such as time and cost, interfaces, and confirmation of the agreement between the Ministry Transition Project Manager and the Team Manager who is to implement the Work Package that the work can be done within the constraints Risk Log Contains all information about the risks, their analysis, countermeasures and status. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 52 22/11/2012 9:33 a.m.

56 No. Assembled Product Groups Product Group Description Ministry Specialist Products 54.7 Lessons Learned Log An informal collection of good and bad lessons learned about the management and specialist processes and products as the Novopay Project progresses Assumptions Register Contains all assumptions that will be considered true, real, or certain for planning purposes. 55 Quality Products 55.1 Project Quality Plan A plan defining the key quality criteria, quality control and audit processes to be applied to project management and specialist work in the Novopay Project. It is part of section 10 of this PID Customer Quality Expectations Delivery of the requirements and expectations of the Ministry and key Stakeholders of the ESP, including the schools payroll support staff as the highest priority of the Novopay Project Acceptance Criteria A prioritised list of criteria that the Final Product must meet before the customer will accept them Quality Log Contains all planned and completed quality activities Project Issue Documents Issue Log Contains all Project Issues including Requests for Change raised during the Novopay Project Project Issue A term used to cover any concern, query, request for change, suggestion or Off-Specification raised during the Novopay Project Off Specification Something that should be provided by the Novopay Project, but currently is not (or is forecast not to be) provided. This might be a missing product or a product not meeting its specifications. It is one type of Project Issue Request for Change A means of proposing a modification to the current specification of a product. It is one type of project issue Change Control Log Contains all controlled requests for change, including submission, analysis and decision making Configuration Products Product Description A description of a product s purpose, composition, derivation and quality criteria Configuration Item Record Log The configuration item records are the master records to show what the current status is of any of the products or deliverables during the life of the Novopay Project Configuration Management Plan A plan that provides details of the measures to be taken if a defined risk should occur. The plan is only implemented if the risk occurs Product Status Account A report on the status of products. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 53 22/11/2012 9:33 a.m.

57 No. Assembled Product Groups Product Group Description Ministry Specialist Products Product Checklist A list of the major products of a plan, plus key dates in their delivery. 60 User Acceptance Testing 60.1 Pre-requisites A complete source of information required to start the process of User Acceptance Testing UAT Acceptance Criteria Criteria which has been decided upon by relevant Novopay Project Stakeholders to determine and measure the acceptance of the Novopay system with users Business Process Test Results The results of testing conducted by the Ministry Pay Accuracy Test Results The results of testing conducted on the Novopay system compared to the current Datacom system to determine the accuracy of amounts paid by the Novopay system UAT results The results generated by the User Acceptance Test which stipulate that the Novopay system will add benefit to the Novopay project stakeholders UAT Test Summary Report A report providing any important information uncovered by the tests completed, and including assessments of the quality of the testing effort, the quality of the software system under test, statistics derived from Incident Reports and an indication whether the Novopay system is fit for purpose according to whether or not it has met acceptance criteria defined by Novopay project stakeholders. Novopay Project Initiation Document - Dec 2011 (v2-18).docx 54 22/11/2012 9:33 a.m.

58 6 Project Planning 6.1 Plan Description The purpose of the Novopay Project is to move from the current Datacom Education Service Payroll environment to the new Talent2 Education Service Payroll environment. The scope of the initial Novopay Project Plan is to: Identify and document the business requirements for the Education Service Payroll Build and develop solutions to deliver these requirements Test that the solutions meet the requirements Manage the transition to the new payroll service and associated business change Set up the Service Desk and Payroll Centres Deliver new business processes, including training Ministry staff and schools payroll support staff Implement and host a modern payroll system or systems Receive a data extract from the existing IT system, transform, clean and load data into the new payroll system or systems Define and implement new service support and service delivery processes, including supporting IT systems. 6.2 Project Pre-Requisites Variation Contract 2 agreed with Talent2 required a replanning phase. The Novopay Project Board approved the February Baseline at the March 2012 Project Board Meeting. 6.3 External Dependencies The Novopay Project has a number of dependencies with areas within the Ministry. The Novopay Establishment Project has agreed Memorandums of Understanding with the Ministry areas, excluding Legal and Executive Communications who provide the services as part of their normal business practices. The following table identifies these areas and the dependencies of the Novopay Project. TABLE 9: NOVOPAY PROJECT AREA DEPENDENCIES Ministry Area Dependencies IT Group Providing oversight and advice from the CIO through the Novopay Project Board. Providing user acceptance testing services to the schools payroll processing. The provision and support of ESIS. Advising of document management strategy and IT solution for the Ministry. Novopay Novopay Project Initiation Document - May 2012 (v3-02).docx 42 22/11/2012 8:56 a.m.

59 Ministry Area Dependencies Delivery & Determination (D&D) The data feed from the payroll system to the payroll data warehouse operated by DM&A that provides data used by D&D. The data file provided by STEER (currently the Wednesday of the pay-run) to schools payroll that enables the Banking Staffing Report to be produced and sent to schools. Consultation with D&D staff regarding the STEER interface file. Consultation with D&D staff regarding sick leave processing. Education Information and Analysis The data feed from the payroll system to the payroll data warehouse operated by Education Information and Analysis. Consultation with Education Information and Analysis staff regarding how the data feed to the data warehouse will operate. Potential additional data teacher registration, qualifications/ethnicity, leave information. Executive Communications Advice and assistance regarding communications strategy and planning, and risk management. Finance Consultation with Finance staff regarding the finance payroll processes. Implementing the finance payroll processes that interact with the provider for the new schools payroll arrangements, schools, and external agencies. Industrial Relations (IR) Use of data in the teachers payroll data warehouse by IR. Ensuring ad-hoc access by IR to data in production payroll system when data required cannot be provided through the data warehouse. IR providing ad-hoc advice to the Novopay Project around payroll operational policy issues. IR reviewing key requirements documents relating to implementation of payroll rules and providing feedback. Novopay Project helping IR understand how rules can be implemented in the new payroll systems in preparation for the new bargaining rounds. Internal Audit (IAG) Engaging IAG in the Novopay Project. Novopay Project outlining the control environment that will be implemented and IAG commenting on the adequacy of the controls proposed and identifying any risks regarding the systems and processes implemented by the new vendor. Legal Payroll and collective legal advice. Review and approve Service Schedules for ESP contract. Novopay Novopay Project Initiation Document - May 2012 (v3-02).docx 43 22/11/2012 8:56 a.m.

60 6.4 Planning Assumptions The following are the Novopay Project planning assumptions: The ESP contract defines the scope of the Talent2 transition services (Schedule 4 [Transition] and Schedule 4A [New Transition Provisions]). The Ministry will not manage any third parties engaged by Talent2. All Ministry and Talent2 Novopay Project Personnel will be recruited and have the appropriate skills and capabilities to complete the activities they are assigned to (clauses 10.2 and 10.9 of the ESP contract). A significant percentage of the Novopay Project Personnel will be experienced with the Talent2 Alesco product and Numara Footprints system. Access to ESP payroll experts will occur as needed. Some Datacom documentation is required for the Novopay Project and the Ministry may have to fund updating or developing this documentation. Required schools payroll representatives will be available when and as they are needed. Chapman Tripp will provide legal services for the Novopay Project. A "full-time" resource implies at least 35 hours productive work per week. The budget figures used in preparing the Ministry estimates are accurate within 10%. Backfilling ESP payroll experts will be required. The contingency budget for the Novopay Project will be available if required. The Novopay Project scope does not include funding any ESP projects not specifically in-scope of the ESP contract or this PID. The Secretary of Education or delegate has authority to approve variations to the ESP contract, excluding any variations to the approved appropriation by Cabinet. Novopay Novopay Project Initiation Document - May 2012 (v3-02).docx 44 22/11/2012 8:56 a.m.

61 6.5 Proposed Project Plan: Agreed Go-Live Date Novopay Project Milestones The following diagram shows the Project Milestones to deliver transition services in the ESP contract. Novopay Novopay Project Initiation Document - May 2012 (v3-02).docx 45 22/11/2012 8:56 a.m. FIGURE 3: PROJECT TIMELINE SUMMARY - TRANSITION SERVICES DELIVERY (ESP CONTRACT)

62 6.5.2 Talent2 Specialist Products Specialist Products Flow Diagram The product flows are included in the critical path of the Novopay Project Plan. FIGURE 4: TALENT2 SPECIALIST PRODUCTS DIAGRAM Novopay Project Initiation Document - May 2012 (v3-02).docx 46 22/11/2012 8:56 a.m.

63 Specialist Products Descriptions The following tables detail the high level project products. TABLE 10: TALENT2 SPECIALIST PRODUCTS DESCRIPTIONS No. Product Groups Product Group Descriptions Talent2 Specialist Products 1 Elaboration Requirements 1.1 Functional Design Specification Review Review and categorisation of Functional Design Specifications to determine required elaboration. 1.2 Project Schedule Computer based Schedule of the tasks involved to complete the Novopay Project; this schedule includes the dates for start and completion of each task. 1.3 Business Requirement Specifications A structured collection of information that embodies the requirements of the Novopay System set out in a traceable format. 1.4 Functional Design Specification A structured document which describes the requested behaviour of the Novopay System by translating the requirements of the system into a solution design. 1.5 Technical Design Specification Technical Design Specifications describe how a functional design will be implemented in terms of technical components. 2 Construction 2.1 Constructed Code Structured programming code and pseudo code developed to implement the functional design. 2.2 Unit Testing Results The results of the tests on individual units of constructed code. 2.3 Reworked Code Reworked Code is programming code and pseudo code which has been changed from the original code because it was not functioning as required by Novopay Project Stakeholders. 3 Systems Integration Testing 3.1 SIT Test Plan A document detailing the systematic approach used to complete system integration testing for the Novopay System. 3.2 SIT Test Schedule A plan containing a detailed understanding of the system integration testing workflow and timeline. 3.3 SIT Test Scripts A documented set of instructions which will be performed on the Novopay System in order to test the functionality. 3.4 SIT Execution The process of completing the systems integration test. 3.5 SIT Test Results The feedback given on the system and the tests completed on the system. Novopay Project Initiation Document - May 2012 (v3-02).docx 47 22/11/2012 8:56 a.m.

64 No. Product Groups Product Group Descriptions Talent2 Specialist Products 3.6 SIT Test Summary Report A report providing any important information uncovered by the tests completed, and including assessments of the quality of the testing effort, the quality of the software system under test, statistics derived from Incident Reports and an indication whether the Novopay system is fit for purpose according to whether or not it has met acceptance criteria defined by Novopay Project Stakeholders. 3.7 Payroll Verification Check A verification that the payroll system is installed and functioning as intended. 4 Service Centre Establishment & Testing 4.1 Wellington Fit Out A fit out of the Wellington premises in anticipation of the Go-Live date. 4.2 Staff Recruited The completing of the recruitment process for new employees who will be deployed in the Service Centre(s). 4.3 Online Training Module A training module which has been designed to aid and support all relevant Stakeholders on the use the Novopay System. 4.4 Non-Functional Requirements Test Results The results of tests to determine the readiness of the payroll centre for Go-Live. 5 Parallel Runs & Pilot 5.1 Acceptance Entry Criteria Criteria which have been decided upon by relevant Novopay Project Stakeholders to determine and measure the acceptance of the Novopay system with users. 5.2 Parallel Run Test Plan A document detailing the systematic approach used to complete parallel run test for the Novopay System. 5.3 Parallel Run Test Run and Results Results of the parallel run test which detail the differences between both systems and assess the results with the acceptance criteria. 5.4 Pilot Test Schedule A plan containing a detailed understanding of the pilot test workflow and timeline. 5.5 Non-Functional Requirements Review A review of the non-functional requirements and how they Novopay system meets those requirements. 5.6 Test Results Report A report on the results of the pilot test. 6 Change Management 6.1 Signed Business Processes The business processes which have been signed off by all relevant Stakeholders. 6.2 User Documentation Documentation detailing how the users are to operate the system including processes undertaken. 6.3 Novopay Website A website for the Novopay System. 7 Go-Live 7.1 Go-Live Plan A plan detailing the actions to be undertaken in a structured format which will be used as a guide for the Go-Live process. Novopay Project Initiation Document - May 2012 (v3-02).docx 48 22/11/2012 8:56 a.m.

65 No. Product Groups Product Group Descriptions Talent2 Specialist Products 7.2 Cut Over Plan A plan detailing decision checkpoints, communication streams, contingency plan, risk factors and a measure to guide the cutover process. 7.3 Existing system decommission plan A detailed plan which identifies the tasks required to shutdown and wrap-up the existing Datacom system. 7.4 Go-Live The date which the Novopay system goes fully active so that its intended users can access it Ministry Specialist Products Descriptions Note: Ministry Products refers to naming conventions associated with existing document storage protocols. TABLE 11: MINISTRY SPECIALIST PRODUCTS No. Assembled Product Groups Product Group Description Ministry Specialist Products 20 Other Ministry Processes This set of products identifies the processes the Ministry will need to define or re-engineer. Products include: Finance processes, Service Delivery Processes, Datacom documentation. 21 Datacom processes This set of products allows for any existing Datacom documentation that the Novopay Project will need to create or update. Products include: document relevant Datacom processes. 22 Document Management This set of products defines and implements a document management process. Products include: Define Document Management Process requirements Implement recommended solution. 23 Service Support This set of processes defines the ESP Team support processes that deliver specific payroll information to Talent2. Products include: 3rd level Support Processes. 24 Service Delivery This set of processes establishes the governance and contract management processes for the ongoing payroll operations. 50 Management Products 51 Plans Products include: Develop ESP O/S Contract Schedules, Develop Service Delivery Process, Set-up on-going Governance. Novopay Project Initiation Document - May 2012 (v3-02).docx 49 22/11/2012 8:56 a.m.

66 No. Assembled Product Groups Product Group Description Ministry Specialist Products 51.1 Novopay Integrated Project Plan (February Baseline) Plan that covers the period of the Novopay Project. There is one high level plan that is shared by Talent2, and the Ministry. Sub-plans can be managed at the Team Leader level and updated into the main Project Plan Exception Plan Plan that often follows an Exception Report. For a Stage Plan Exception, it covers the period from the present to the end of the current stage. If the exception were at a project level, the Project Plan would be replaced. Not in use Stage Plan Plan for each key stage of the Novopay Project. The plan shows all of the products to be developed during that stage. Incorporated into the Novopay Integrated Project Plan Post-Project Review Plan A report given by the Ministry Project Managers to the Novopay Project Board defines how and when a measurement of the achievement of the Novopay Project benefits can be made. 51 Reports 52.1 End Project Report A report given by the Ministry Project Managers to the Novopay Project Board that confirms the handover of all products and provides an updated Business Case and an assessment of how well the Novopay Project has done against the PID End Stage Report A report given by the Ministry Project Managers to the Steering Committee at the end of each management stage of the Novopay Project. This provides information about the project performance during the stage and the project status at stage end Project Update Report Monthly report from the Steering Committee to the Novopay Project Board on stage progress. Also used for updating the Steering Committee. This report is a copy of the relevant Weekly Report (see below) Weekly Project Report A progress report provided by the Programme Director, and agreed by, the Steering Committee Lesson Learned Report A report that describes the lessons learned in undertaking the Novopay Project and includes statistics from the quality control of the Novopay Project s management products Follow Up Actions Report A report that can be used as input to the process of creating a Business Case/Project Mandate for any follow-on and for recording any follow-on instructions covering incomplete products or outstanding Project Issues Exception Report Description of the exception situation, its impact, options, recommendation and impact of the recommendation to the Novopay Project Board. Novopay Project Initiation Document - May 2012 (v3-02).docx 50 22/11/2012 8:56 a.m.

67 No. Assembled Product Groups Product Group Description Ministry Specialist Products 53 Project Organisation Structure This product is the organisation chart, roles and responsibilities for the Novopay Project. These are documented in the PID. 54 Controls 54.1 Communications Plan Part of the PID describing how the Novopay Project s Stakeholders and interested parties will be kept informed during the Novopay Project. Endorsed by the Steering Committee on 21 December PID This document will form the basis of the management of the Novopay Project and the basis for assessing the overall success. The PID will be updated, if required, to reflect changes to scope or management requirements during the life of the Novopay Project Project Management Products (with input from Talent2) Management Review A systematic evaluation of the Novopay Project and the implications for both Talent2 and the Ministry PWC Review Review(s) conducted by an external party in order to assess the Novopay Project Meeting Review Sign Off A sign off for the Management Review End of Stage Reports A set of reports which are used to give a summary of progress to date, the overall Novopay Project situation, and sufficient information to ask for a Novopay Project Board decision on what to do next with the Novopay Project Project Brief This product will not be developed because Cabinet approval for the Novopay Project has been received Work Package The set of information relevant to the creation of one or more products. It will contain a description of the work, the Product Description(s), details of any constraints on production such as time and cost, interfaces Risk Register Contains all information about the risks, their analysis, countermeasures and status. This is reviewed in detail by the project teams on a Monthly Basis and considered by the Steering Committee on a weekly basis and by the Project Board on a monthly basis Lessons Learned Log An informal collection of good and bad lessons learned about the management and specialist processes and products as the Novopay Project progresses Assumptions Register Contains all assumptions that will be considered true, real, or certain for planning purposes. Novopay Project Initiation Document - May 2012 (v3-02).docx 51 22/11/2012 8:56 a.m.

68 55 Quality Products 55.1 Project Quality Plan A plan defining the key quality criteria, quality control and audit processes to be applied to project management and specialist work in the Novopay Project. It is part of section 10 of this PID Customer Quality Expectations Delivery of the requirements and expectations of the Ministry and key Stakeholders of the ESP, including the schools payroll support staff as the highest priority of the Novopay Project Acceptance Criteria A list of criteria that the Project Milestones must achieve to be endorsed as complete by the Steering Committee Quality Log Contains all planned and completed quality activities Project Issue Documents Issue Logs Contains Project Issues including Requests for Change raised during the Novopay Project Project Issue A term used to cover any concern, query, request for change, suggestion or Off-Specification raised during the Novopay Project Off Specification Something that should be provided by the Novopay Project, but currently is not (or is forecast not to be) provided. This might be a missing product or a product not meeting its specifications. It is one type of Project Issue Request for Change A means of proposing a modification to the current specification of a product. It is one type of project issue Change Control Log Contains all controlled requests for change, including submission, analysis and decision making Configuration Products Product Description A description of a product s purpose, composition, derivation and quality criteria Configuration Item Record Log The configuration item records are the master records to show what the current status is of any of the products or deliverables during the life of the Novopay Project Configuration Management Plan A plan that provides details of the measures to be taken if a defined risk should occur. The plan is only implemented if the risk occurs Product Status Account A report on the status of products Product Checklist A list of the major products of a plan, plus key dates in their delivery. 60 User Acceptance Testing 60.1 Pre-requisites Items required to be complete before a phase of testing can begin. Novopay Project Initiation Document - May 2012 (v3-02).docx 52 22/11/2012 8:56 a.m.

69 60.2 UAT Acceptance Criteria Criteria which has been decided upon by relevant Novopay Project Stakeholders to determine and measure the acceptance of the Novopay system with users Business Process Test Results The results of testing conducted by the Ministry Pay Accuracy Test Results The results of testing conducted on the Novopay system compared to the current Datacom system to determine the accuracy of amounts paid by the Novopay system UAT results The results generated by the User Acceptance Test which stipulate that the Novopay system will add benefit to the Novopay project stakeholders UAT Test Summary Report A report providing any important information uncovered by the tests completed, and including assessments of the quality of the testing effort, the quality of the software system under test, statistics derived from Incident Reports and an indication whether the Novopay system is fit for purpose according to whether or not it has met acceptance criteria defined by Novopay project stakeholders. Novopay Project Initiation Document - May 2012 (v3-02).docx 53 22/11/2012 8:56 a.m.

70 6 Project Planning 6.1 Plan Description The purpose of the Novopay Project is to move from the current Datacom Education Service Payroll environment to the new Talent2 Education Service Payroll environment. The scope of the initial Novopay Project Plan is to: Identify and document the business requirements for the Education Service Payroll Build and develop solutions to deliver these requirements Test that the solutions meet the requirements Manage the transition to the new payroll service and associated business change Set up the Service Desk and Payroll Centres Deliver new business processes, including training Ministry staff and schools payroll support staff Implement and host a modern payroll system or systems Receive a data extract from the existing IT system, transform, clean and load data into the new payroll system or systems Define and implement new service support and service delivery processes, including supporting IT systems. 6.2 Project Pre-Requisites Variation Contract 2 agreed with Talent2 required a replanning phase. The Novopay Project Board approved the February Baseline at the March 2012 Project Board Meeting. 6.3 External Dependencies The Novopay Project has a number of dependencies with areas within the Ministry. The Novopay Establishment Project has agreed Memorandums of Understanding with the Ministry areas, excluding Legal and Executive Communications who provide the services as part of their normal business practices. The following table identifies these areas and the dependencies of the Novopay Project. TABLE 9: NOVOPAY PROJECT AREA DEPENDENCIES Ministry Area Dependencies IT Group Providing oversight and advice from the CIO through the Novopay Project Board. Providing user acceptance testing services to the schools payroll processing. The provision and support of ESIS. Advising of document management strategy and IT solution for the Ministry. Novopay Novopay Project Initiation Document - July 2012 (v3-05).docx 58 22/11/2012 9:05 a.m.

71 Ministry Area Dependencies Delivery & Determination (D&D) The data feed from the payroll system to the payroll data warehouse operated by DM&A that provides data used by D&D. The data file provided by STEER (currently the Wednesday of the pay-run) to schools payroll that enables the Banking Staffing Report to be produced and sent to schools. Consultation with D&D staff regarding the STEER interface file. Consultation with D&D staff regarding sick leave processing. Education Information and Analysis The data feed from the payroll system to the payroll data warehouse operated by Education Information and Analysis. Consultation with Education Information and Analysis staff regarding how the data feed to the data warehouse will operate. Potential additional data teacher registration, qualifications/ethnicity, leave information. Executive Communications Advice and assistance regarding communications strategy and planning, and risk management. Finance Consultation with Finance staff regarding the finance payroll processes. Implementing the finance payroll processes that interact with the provider for the new schools payroll arrangements, schools, and external agencies. Industrial Relations (IR) Use of data in the teachers payroll data warehouse by IR. Ensuring ad-hoc access by IR to data in production payroll system when data required cannot be provided through the data warehouse. IR providing ad-hoc advice to the Novopay Project around payroll operational policy issues. IR reviewing key requirements documents relating to implementation of payroll rules and providing feedback. Novopay Project helping IR understand how rules can be implemented in the new payroll systems in preparation for the new bargaining rounds. Internal Audit (IAG) Engaging IAG in the Novopay Project. Novopay Project outlining the control environment that will be implemented and IAG commenting on the adequacy of the controls proposed and identifying any risks regarding the systems and processes implemented by the new vendor. Legal Payroll and collective legal advice. Review and approve Service Schedules for ESP contract. Novopay Novopay Project Initiation Document - July 2012 (v3-05).docx 59 22/11/2012 9:05 a.m.

72 6.4 Planning Assumptions The following are the Novopay Project planning assumptions: The ESP contract defines the scope of the Talent2 transition services (Schedule 4 [Transition] and Schedule 4A [New Transition Provisions]). The Ministry will not manage any third parties engaged by Talent2. All Ministry and Talent2 Novopay Project Personnel will be recruited and have the appropriate skills and capabilities to complete the activities they are assigned to (clauses 10.2 and 10.9 of the ESP contract). A significant percentage of the Novopay Project Personnel will be experienced with the Talent2 Alesco product and Numara Footprints system. Access to ESP payroll experts will occur as needed. Some Datacom documentation is required for the Novopay Project and the Ministry may have to fund updating or developing this documentation. Required schools payroll representatives will be available when and as they are needed. Chapman Tripp will provide legal services to the Ministry for the Novopay Project. A "full-time" resource implies at least 35 hours productive work per week. The budget figures used in preparing the Ministry estimates are accurate within 10%. Backfilling ESP payroll experts will be required. The contingency budget for the Novopay Project will be available if required. The Novopay Project scope does not include funding any ESP projects not specifically in-scope of the ESP contract or this PID. The Secretary of Education or delegate has authority to approve variations to the ESP contract, excluding any variations to the approved appropriation by Cabinet. Novopay Novopay Project Initiation Document - July 2012 (v3-05).docx 60 22/11/2012 9:05 a.m.

73 6.5 Proposed Project Plan: Agreed Go-Live Date Novopay Project Milestones The following diagram shows the Project Milestones to deliver transition services in the ESP contract. Novopay Novopay Project Initiation Document - July 2012 (v3-05).docx 61 22/11/2012 9:05 a.m. FIGURE 4: PROJECT TIMELINE SUMMARY - TRANSITION SERVICES DELIVERY (ESP CONTRACT)

74 6.5.2 Talent2 Specialist Products Specialist Products Flow Diagram The product flows are included in the critical path of the Novopay Project Plan. FIGURE 5: TALENT2 SPECIALIST PRODUCTS DIAGRAM Novopay Project Initiation Document - July 2012 (v3-05).docx 62 22/11/2012 9:05 a.m.

75 Specialist Products Descriptions The following tables detail the high level project products. TABLE 10: TALENT2 SPECIALIST PRODUCTS DESCRIPTIONS No. Product Groups Product Group Descriptions Talent2 Specialist Products 1 Elaboration Requirements 1.1 Functional Design Specification Review Review and categorisation of Functional Design Specifications to determine required elaboration. 1.2 Project Schedule Computer based Schedule of the tasks involved to complete the Novopay Project; this schedule includes the dates for start and completion of each task. 1.3 Business Requirement Specifications A structured collection of information that embodies the requirements of the Novopay System set out in a traceable format. 1.4 Functional Design Specification A structured document which describes the requested behaviour of the Novopay System by translating the requirements of the system into a solution design. 1.5 Technical Design Specification Technical Design Specifications describe how a functional design will be implemented in terms of technical components. 2 Construction 2.1 Constructed Code Structured programming code and pseudo code developed to implement the functional design. 2.2 Unit Testing Results The results of the tests on individual units of constructed code. 2.3 Reworked Code Reworked Code is programming code and pseudo code which has been changed from the original code because it was not functioning as required by Novopay Project Stakeholders. 3 Systems Integration Testing 3.1 SIT Test Plan A document detailing the systematic approach used to complete system integration testing for the Novopay System. 3.2 SIT Test Schedule A plan containing a detailed understanding of the system integration testing workflow and timeline. Novopay Project Initiation Document - July 2012 (v3-05).docx 63 22/11/2012 9:05 a.m.

76 No. Product Groups Product Group Descriptions Talent2 Specialist Products 3.3 SIT Test Scripts A documented set of instructions which will be performed on the Novopay System in order to test the functionality. 3.4 SIT Execution The process of completing the systems integration test. 3.5 SIT Test Results The feedback given on the system and the tests completed on the system. 3.6 SIT Test Summary Report A report providing any important information uncovered by the tests completed, and including assessments of the quality of the testing effort, the quality of the software system under test, statistics derived from Incident Reports and an indication whether the Novopay system is fit for purpose according to whether or not it has met acceptance criteria defined by Novopay Project Stakeholders. 3.7 Payroll Verification Check A verification that the payroll system is installed and functioning as intended. 4 Service Centre Establishment & Testing 4.1 Wellington Fit Out A fit out of the Wellington premises in anticipation of the Go-Live date. 4.2 Staff Recruited The completing of the recruitment process for new employees who will be deployed in the Service Centre(s). 4.3 Online Training Module A training module which has been designed to aid and support all relevant Stakeholders on the use the Novopay System. 4.4 Non-Functional Requirements Test Results 5 Parallel Runs & Pilot The results of tests to determine the readiness of the payroll centre for Go-Live. 5.1 Acceptance Entry Criteria Criteria which have been decided upon by relevant Novopay Project Stakeholders to determine and measure the acceptance of the Novopay system with users. 5.2 Parallel Run Test Plan A document detailing the systematic approach used to complete parallel run test for the Novopay System. 5.3 Parallel Run Test Run and Results Results of the parallel run test which detail the differences between both systems and assess the results with the acceptance criteria. Novopay Project Initiation Document - July 2012 (v3-05).docx 64 22/11/2012 9:05 a.m.

77 No. Product Groups Product Group Descriptions Talent2 Specialist Products 5.4 Pilot Test Schedule A plan containing a detailed understanding of the pilot test workflow and timeline. 5.5 Non-Functional Requirements Review A review of the non-functional requirements and how they Novopay system meets those requirements. 5.6 Test Results Report A report on the results of the pilot test. 6 Change Management 6.1 Signed Business Processes The business processes which have been signed off by all relevant Stakeholders. 6.2 User Documentation Documentation detailing how the users are to operate the system including processes undertaken. 6.3 Novopay Website A website for the Novopay System. 7 Go-Live 7.1 Go-Live Plan A plan detailing the actions to be undertaken in a structured format which will be used as a guide for the Go-Live process. 7.2 Cut Over Plan A plan detailing decision checkpoints, communication streams, contingency plan, risk factors and a measure to guide the cutover process. 7.3 Existing system decommission plan A detailed plan which identifies the tasks required to shutdown and wrap-up the existing Datacom system. 7.4 Go-Live The date which the Novopay system goes fully active so that its intended users can access it Ministry Specialist Products Descriptions Note: Ministry Products refers to naming conventions associated with existing document storage protocols. TABLE 11: MINISTRY SPECIALIST PRODUCTS No. Assembled Product Groups Product Group Description Ministry Specialist Products 20 Other Ministry Processes This set of products identifies the processes the Ministry will need to define or re-engineer. Products include: Finance processes, Service Delivery Processes, Datacom documentation. Novopay Project Initiation Document - July 2012 (v3-05).docx 65 22/11/2012 9:05 a.m.

78 No. Assembled Product Groups Product Group Description Ministry Specialist Products 21 Datacom processes This set of products allows for any existing Datacom documentation that the Novopay Project will need to create or update. Products include: document relevant Datacom processes. 22 Document Management This set of products defines and implements a document management process. Products include: Define Document Management Process requirements Implement recommended solution. 23 Service Support This set of processes defines the ESP Team support processes that deliver specific payroll information to Talent2. Products include: 3rd level Support Processes. 24 Service Delivery This set of processes establishes the governance and contract management processes for the ongoing payroll operations. 50 Management Products 51 Plans Products include: Develop ESP O/S Contract Schedules, Develop Service Delivery Process, Set-up on-going Governance Novopay Integrated Project Plan (February Baseline) Plan that covers the period of the Novopay Project. There is one high level plan that is shared by Talent2, and the Ministry. Sub-plans can be managed at the Team Leader level and updated into the main Project Plan Exception Plan Plan that often follows an Exception Report. For a Stage Plan Exception, it covers the period from the present to the end of the current stage. If the exception were at a project level, the Project Plan would be replaced. Not in use Stage Plan Plan for each key stage of the Novopay Project. The plan shows all of the products to be developed during that stage. Incorporated into the Novopay Integrated Project Plan. Novopay Project Initiation Document - July 2012 (v3-05).docx 66 22/11/2012 9:05 a.m.

79 No. Assembled Product Groups Product Group Description Ministry Specialist Products 51.4 Post-Project Review Plan A report given by the Ministry Project Managers to the Novopay Project Board defines how and when a measurement of the achievement of the Novopay Project benefits can be made. 51 Reports 52.1 End Project Report A report given by the Ministry Project Managers to the Novopay Project Board that confirms the handover of all products and provides an updated Business Case and an assessment of how well the Novopay Project has done against the PID End Stage Report A report given by the Ministry Project Managers to the Steering Committee at the end of each management stage of the Novopay Project. This provides information about the project performance during the stage and the project status at stage end Project Update Report Monthly report from the Steering Committee to the Novopay Project Board on stage progress. Also used for updating the Steering Committee. This report is a copy of the relevant Weekly Report (see below) Weekly Project Report A progress report provided by the Programme Director, and agreed by, the Steering Committee Lesson Learned Report A report that describes the lessons learned in undertaking the Novopay Project and includes statistics from the quality control of the Novopay Project s management products Follow Up Actions Report A report that can be used as input to the process of creating a Business Case/Project Mandate for any follow-on and for recording any follow-on instructions covering incomplete products or outstanding Project Issues Exception Report Description of the exception situation, its impact, options, recommendation and impact of the recommendation to the Novopay Project Board. 53 Project Organisation Structure This product is the organisation chart, roles and responsibilities for the Novopay Project. These are documented in the PID. 54 Controls Novopay Project Initiation Document - July 2012 (v3-05).docx 67 22/11/2012 9:05 a.m.

80 No. Assembled Product Groups Product Group Description Ministry Specialist Products 54.1 Communications Plan Part of the PID describing how the Novopay Project s Stakeholders and interested parties will be kept informed during the Novopay Project. Endorsed by the Steering Committee on 21 December PID This document will form the basis of the management of the Novopay Project and (at an operational as opposed to contractual level) the basis for assessing the overall success Project Management Products (with input from Talent2) The PID will be updated, if required, to reflect changes to scope or management requirements during the life of the Novopay Project Management Review A systematic evaluation of the Novopay Project and the implications for both Talent2 and the Ministry PWC Review Review(s) conducted by an external party in order to assess the Novopay Project Meeting Review Sign Off A sign off for the Management Review End of Stage Reports A set of reports which are used to give a summary of progress to date, the overall Novopay Project situation, and sufficient information to ask for a Novopay Project Board decision on what to do next with the Novopay Project Project Brief This product will not be developed because Cabinet approval for the Novopay Project has been received Work Package The set of information relevant to the creation of one or more products. It will contain a description of the work, the Product Description(s), details of any constraints on production such as time and cost, interfaces Risk Register Contains all information about the risks, their analysis, countermeasures and status. This is reviewed in detail by the project teams on a Monthly Basis and considered by the Steering Committee on a weekly basis and by the Project Board on a monthly basis Lessons Learned Log An informal collection of good and bad lessons learned about the management and specialist processes and products as the Novopay Project progresses. Novopay Project Initiation Document - July 2012 (v3-05).docx 68 22/11/2012 9:05 a.m.

81 No. Assembled Product Groups Product Group Description Ministry Specialist Products 54.9 Assumptions Register Contains all assumptions that will be considered true, real, or certain for planning purposes. Novopay Project Initiation Document - July 2012 (v3-05).docx 69 22/11/2012 9:05 a.m.

82 55 Quality Products 55.1 Project Quality Plan A plan defining the key quality criteria, quality control and audit processes to be applied to project management and specialist work in the Novopay Project. It is part of section 10 of this PID Customer Quality Expectations Delivery of the requirements and expectations of the Ministry and key Stakeholders of the ESP, including the schools payroll support staff as the highest priority of the Novopay Project Acceptance Criteria A list of criteria that the Project Milestones must achieve to be endorsed as complete by the Steering Committee Quality Log Contains all planned and completed quality activities Project Issue Documents Issue Logs Contains Project Issues including Requests for Change raised during the Novopay Project Project Issue A term used to cover any concern, query, request for change, suggestion or Off-Specification raised during the Novopay Project Off Specification Something that should be provided by the Novopay Project, but currently is not (or is forecast not to be) provided. This might be a missing product or a product not meeting its specifications. It is one type of Project Issue Request for Change A means of proposing a modification to the current specification of a product. It is one type of project issue Change Control Log Contains all controlled requests for change, including submission, analysis and decision making Configuration Products Product Description A description of a product s purpose, composition, derivation and quality criteria Configuration Item Record Log The configuration item records are the master records to show what the current status is of any of the products or deliverables during the life of the Novopay Project Configuration Management Plan A plan that provides details of the measures to be taken if a defined risk should occur. The plan is only implemented if the risk occurs Product Status Account A report on the status of products. Novopay Project Initiation Document - July 2012 (v3-05).docx 70 22/11/2012 9:05 a.m.

83 55.45 Product Checklist A list of the major products of a plan, plus key dates in their delivery. 60 User Acceptance Testing 60.1 Pre-requisites Items required to be complete before a phase of testing can begin UAT Acceptance Criteria Criteria which has been decided upon by relevant Novopay Project Stakeholders to determine and measure the acceptance of the Novopay system with users Business Process Test Results The results of testing conducted by the Ministry Pay Accuracy Test Results The results of testing conducted on the Novopay system compared to the current Datacom system to determine the accuracy of amounts paid by the Novopay system UAT results The results generated by the User Acceptance Test which stipulate that the Novopay system will add benefit to the Novopay project stakeholders UAT Test Summary Report A report providing any important information uncovered by the tests completed, and including assessments of the quality of the testing effort, the quality of the software system under test, statistics derived from Incident Reports and an indication whether the Novopay system is fit for purpose according to whether or not it has met acceptance criteria defined by Novopay project stakeholders. Novopay Project Initiation Document - July 2012 (v3-05).docx 71 22/11/2012 9:05 a.m.

84 Project Initiation Document (Revised) Payroll Business Continuity Option Project Version of 43 Ministry of Education 2011

85 Project Initiation Document (Revised) Payroll Business Continuity Option Project 1. Discovery August/September Sept Design October/November Dec Evaluation/Preparation Dec/Jan/Feb 8 Mar Negotiation March/April/May May 2012 Statement of work for Discovery Weekly project meetings Weekly project reports Transition approach Draft Requirements Datacom Plan for Design Statement of work for Design Weekly project meetings Weekly project reports Binding proposal for business continuity payroll services Statement of work for Evaluation/Prep Updates(s) to proposal Weekly project meetings Weekly project reports Statement of work for desirable pre-work Completed desirable pre-work Agreement to Contract BINDING CONTRACT FOR SERVICES Weekly project meetings Weekly project reports Statement of Work Evaluation Plan To September meeting of Governance Board Evaluation Recommendation STAGE DECISION POINT: [30/9/11] Recommendation re SoW Proposal Evaluation Plan STAGE DECISION POINT: [8/3/12] Proposal Evaluation Report Communications Plan Contract for continuity of payroll services Communications Plan Procurement Plan for Devt of BCP Governance Board Update (9/11) Project Initiation Document Stage Plan Discovery To September meeting of Governance Board Adjusted Proposal Template Business Case Outline Determination Process Updated Project Initiation Document Stage Plan Design Governance Board Update (10/11) NR Payroll Services Market Scan Monthly reports to Novopay Board Governance Board Update (11/11) Procurement Determination Updated Project Initiation Document Stage Plan Evaluation /Preparation Governance Board Update (12/11) STAGE DECISION POINT: [5/12/11] Draft Contract Plan Draft Contract Proc mnt Plan for Payroll Services Stage Plan Negotiation Draft Negotiation Plan Governance Board Update (3/12) Updated Project Initiation Document DECISION SUPPORT FOR CABINET/MINISTERS Business Case (if req d) CAB paper Governance Board Update (6/12) Updated Project Initiation Document Stage Plan Initiation Version of 43 Ministry of Education 2011

86 To: From: Novopay Steering Committee XXXXXXX Chief Information Officer Ministry of Education Date: 19 June 2012 File: Novopay Project Subject Purpose: Rapid Response Centre This memo outlines the proposed structure and function of the Rapid Response Centre (RRC) which we intend to test during the BETA phase of the project. It will be in place from the 21 June to the 5 July. It will then be activated as per the criteria listed below. Note: It does not supersede or over-ride business as usual decisions. It is only activated for when multiple system issues/service issues start to accumulate AND/OR when communications to key stakeholders are required (because of the political landscape at the current time). I am seeking approval for testing the structure and function of the Rapid Response Centre as outlined in this memo during BETA. Problem Statement While planning for service operations provides for a level of increased support during the transition period, it will be challenged by compounding problems or large-scale failure. In addition; Expert capacity to address unique and complex problems quickly will be scarce. Some solution deployment will require prioritisation and management of interim arrangements, potentially for multiple pay-cycles. Escalation of stakeholder noise (on real or perceived problems) will complicate service delivery and solution development. Pressure to expedite solutions will create the potential to make mistakes in service delivery and system development. The nature of the potential problems and their typical response approach is set out in the matrix below. This reflects that routine problems on an isolated scale are expected to be managed within a BAU environment. Escalation will be necessary as problems in terms of the number of them or the numbers of payees affected by them move to the right of the matrix.