Initiation Report Inland Revenue Transformation Plan project

Transcription

1 Inland Revenue Plan project Project Sponsors: Peter Mersi and Tim Occleshaw Withheld under section 9(2)(a) of the Official Information Act 1982 Prepared by: Date: June 2011 Draft In Confidence

2 About this document The is the required output of IR's Project Management Framework's Develop Initiation Report activity (Initiate phase). The report summarises the successful completion of the Initiate phase activities required by IR's Project Management Framework and seeks approval and funding from the Portfolio Governance and Investment Committee for the project to commence Design phase activities. Withheld under section 9(2)(a) of the Official Information Act 1982 Document Signoff The IR Plan project recommendations are approved: Formal Review Area Name Signature Date Sponsor Business Sponsor ID&S Peter Mersi Tim Occleshaw 2 Inform Future Decisions Draft In Confidence

3 Contents Introduction 4 Project Objectives 4 Critical Success Factors 5 Scope 5 Approach 6 Deliverables 8 Project schedules 9 Risk and Issue Management 10 Stakeholder Assessment 11 Resources - core team 11 Resources - subject matter experts 12 Management Structure 13 Management Roles and Responsibilities 13 Budget 14 Recommendations 14 3 Inform Future Decisions Draft In Confidence

4 Introduction The Inland Revenue (IR) Plan project brings together several existing streams of work related to business blueprints, technology renewal and extension of FIRST's life that have to date been managed as separate workstreams within Business and ID&S. The rationale of combining these related pieces of work is to develop an enterprise wide view (people, process, policy and technology) of the transformation options and roadmap work for Ministers by September. Inland Revenue has made a commitment to the Ministers (IRD2011/037 refers) that it will deliver the following information to them by September: options to maintain elements of the FIRST operating environment for longer than originally anticipated and for the de-coupling and packaging of functions into services options for deploying systems change. These options include maintaining our current product-byproduct approach, building by functionality, or building a new system in isolation using currently licensed enterprise COTS packages a clearer view of our end-to-end processes and the demands placed on them. The purpose of this document is to gain sponsor approval on the overall approach, scope and plans. Project Objectives The primary objective of this project is to develop a set of Executive Board (EB) and/or Business Programme Board (BTPB) endorsed plans for business transformation along with the technologies required to support it. The aim of these plans is to provide Ministers with the confidence that Inland Revenue knows how it will transform its business. The plans will inform future decision making for all business change and technology renewal activities going forward. A current state business blueprint that details the products, services and processes that Inland Revenue currently supports A future state business blueprint that details the products, services and processes that Inland Revenue will need to support in the future based on the organisation's intended direction as outlined in IR for the Future and the 2014 work. A technology future state vision based on the future state business blueprint work A feasibility report on how Inland Revenue could maintain FIRST including consideration of the stabilisation activities required to support the desired future business state. This work will also feed into the 'do nothing' option in the options work A set of preferred and prioritised transformation options that have been chosen using a set of BTPB endorsed evaluation criteria An assessment of the fit of Inland Revenue's current and planned project activities against the future business and technology states A roadmap of the transformation projects and activities based on BTPB endorsed option(s) An indication of the cost benefit models and level of funding required to support the transformation options and roadmap A delivery approach to support the options and roadmap when implementing the transformation roadmap. This will include a prioritisation method and benefits model to support the selection of the most effective project investments and implementation options. This may include making recommendations as to which projects should be stopped due to overlaps and/or organisational capacity/capability constraints and/or non-alignment with agreed priorities. Engage and work with an optimal number of Inland Revenue's business units to ensure that the prioritised transformational options and roadmap have buy-in, credibility and best meet the IR transformation and strategic objectives. 4 Inform Future Decisions Draft In Confidence

5 Critical Success Factors Project Objectives Critical Success Factors Key Indicators Metrics To develop a set of Executive Board (EB) and/or Business Programme Board (BTPB) endorsed plans for business transformation along with the technologies required to support it. To develop a delivery approach to support the options and roadmap when implementing the transformation roadmap. To develop a set of cost benefit models and level of funding required to support the transformation options and roadmap To develop a future state business blueprint that details the products, services and processes that Inland Revenue will need to support in the future To develop a set of cost benefit models to support the transformation options and roadmap Inland Revenue has an EB/BTPB endorsed business and technology future state along with the options, roadmaps and funding strategies required to achieve the future state complete by September Ministers understand Inland Revenue's transformation direction and how they intend to achieve the transformation. Inland Revenue has supporting processes, management and governance in place to implement the roadmap. Inland Revenue is ready to start developing business cases to seek funding for activities on the roadmap.. Inland Revenue has been able to make decisions on what should be included in the transformation plan based upon quantifiable and evidence based rationale Ministers papers are completed on time Ministers papers have BTPB/EB endorsement Ministers have sufficient information to choose transformation option from options provided in Ministers papers BTPB know how to govern and manage the plan going forward. Inland Revenue is starting stage 1 business cases. BTPB feel confident that the initiatives outlined on the plans are the right initiatives. Ministers papers ready by September 2011 EB/BTPB meeting minutes record endorsement of transformation plans and Ministers papers prior to release to Ministers Ministers choose a transformation option by October 2011 Within funding constraints BTPB can start initiatives on Roadmap planned for January 2012 on time. Inland Revenue is starting stage 1 business cases as required by January BTPB is able to direct organisation to proceed on initiatives as planned. Scope In Scope Confirmation of business drivers A current and future state business model A future state technology vision (based on business drivers and technology imperatives) A set of preferred transformation options that include consideration of people, process, policy and technology based on business and technology future states. The preferred option list will be selected using agreed selection criteria from an option long list. Development of cost benefit models for the preferred transformation options only. This is to provide the necessary financial information for the development of a funding strategy Out of Scope Recreating business vision - existing material to be used from 2014 and IR for the Future Detailed current state assessment of current technology (but sufficient current state analysis to inform vision, option and roadmap work) Detailed analysis of the transformation option long list - a high level analysis will only be performed on the preferred transformation options The cost benefit work for the preferred options will only be to provide a comparison of the relative merit of the options, an indication of order of magnitude and will require more work to be included in future business cases. No cost benefit analysis will be performed for the long list options. 5 Inform Future Decisions Draft In Confidence

6 A funding strategy (an indication of the one-off and ongoing costs and benefits for implementing the roadmaps) A set of roadmaps to show the sequence and timing of the major initiatives required to transform the business (up to a ten year period) to achieve the business and technology future states. There will be more detail on the initiatives in the 1-3 years with less detail on the initiatives 4+ years on. An assessment of the more significant current projects underway to determine their fit against the future state and recommendations on their inclusion or not within the roadmap. A proposed decision making process for Inland Revenue's governance groups to use in implementing and managing the roadmap delivery approach Development of the paper (and supporting documentation) for Ministers summarising the artefacts in scope above. Sufficient stakeholder consultation to provide Executive Board with confidence that the process was robust and the output of sufficient quality to be presented to Ministers. Independent assurance for the latter parts of the project during August and September to assure senior management on quality of process and output. Project will tailor PMF deliverables to be 'fit for purpose' in agreement with project sponsors Development of stage 1 and/or 2 business cases to seek funding. Business and Technology Strategies (but the options and roadmap work will be essential inputs into these strategies) Detailed plans sufficient to initiate projects from. Stakeholder consultation and communication across the whole organisation. Completion of all PMF deliverables Approach The IR Plan project consists of two workstreanns that will be responsible for the delivery of a number of individual and joint deliverables as follows: Business Blueprint: This workstreann is responsible for the development of current and future states for the business cased upon business drivers and strategic outcomes. They will then work in tandem with the Technology workstream to deliver roadmaps, options, the funding strategy, a delivery approach and papers for Ministers. Technology : This workstreann is responsible for the development of a future technology state along with a position on how FIRST's life could be maintained. They will then work in tandem with the Blueprint team to deliver the remaining deliverables as above. 6 1 Inform Future Decisions Draft In Confidence

7 The diagram below shows the key deliverables along with the month in which they are to be delivered. May/June July August September SME Group: Business units Business Blueprint workstream Technology workstream Business Blueprint - current & future state Technology Vision Maintain FIRST feasibility report including Stabilisation activities Transfor - mation options 0 Transfor mation roadmap Transfor Transfor mation 40. mation funding delivery strategy approach Transfor - mation paper for Ministers SME Group: Technology Hub Stakeholder communication and consultation/btpb endorsement Due to the aggressive timeframes to be met to deliver the required output for Ministers by September 2011, the following approach is required: Joint Design: Once technology and business future state work is complete, the options and roadmap work will be completed by a team of business and technology subject matter experts supported by a small core full time team. Structured workshops: Workshops will be facilitated in a structured way to enable attendees to provide maximum input based on the Business Blueprint and Technology Vision work completed through June. This will include: O Set up of all workshops in advance O Agendas and objectives O Pre-reading O 'Strawman' deliverables as starters for 10 to aid discussion as quickly as possible at workshops O Quick turn around of workshop output Timeboxed activities: The project plan attached to this project will be baselined with a final deliverable date to fit within required Ministerial timeframes. This means that the contributing activities will be timeboxed which for some deliverables may mean a less than optimal level of consultation and/or detail. Where possible throughout the process there will be some scope for iterative development of the deliverables up until final sign out for Ministers by Executive Board. Optimal consultation: The team will aim for as much consultation with internal and external stakeholders as is practical within the timeframe. As a minimum the Executive Board (or BTPB) must endorse the deliverables as outlined below. Ongoing QA: Throughout process workshop attendees will be encouraged to take back workshop inputs and outputs to test with their BAU colleagues and external independent assurance expertise will also be sought to QA outputs. 7 Inform Future Decisions Draft In Confidence

8 Deliverables The deliverables below have been grouped into the 3 next steps that Inland Revenue has committed to with Ministers for the September paper. The deliverables with asterisks (*) relate to more than one of the next steps. "Options to maintain elements of the FIRST operating environment for longer than originally anticipated and for the de-coupling and packaging of functions into services." Deliverable Deliverable description De livery date Maintain FIRST assessment* A paper outlining how long FIRST will able to be maintained and an indication of activities that may be required to keep FIRST running and to support future business needs Draft 1 complete by 17 June 2011 Draft 2 ready for EB (if required) by 29 June 2011) "Options for deploying systems change. These options include maintaining our current product-byproduct approach, building by functionality, or building a new system in isolation using currently licensed enterprise COTS packages." Deliverable Deliverable description Delivery date Technology Vision option selection criteria* options* A visual representation of how the technology of IR of the future looks in 10 years and may include visuals to show: architectural frameworks key types of applications capabilities an overlay on business vision and business requirements A set of high level descriptions that support the diagrams/visuals including: key features drivers for change alignment to enterprise and cross-govt strategies and initiatives alignment to business requirements risks/opportunities extent of change/impact to organisation capabilities required comparison to good practice and other tax administrations principles/assumptions Draft 1 ready for use in Technology Options workshops 18 July 2011 Draft 2 ready for BTPB endorsement 7 July 2011 Draft 3 ready for final endorsement by BTPB for release to Ministers 23 August 2011 A set of criteria by which options will be assessed. Draft 1 ready for BTPB endorsement 7 July 2011 Draft 2 ready for use in Technology Options workshops 19 July 2011 A set of transformation options (including the do nothing option (the counter factual)) to deliver the intent of the business and technology future states. Each option will include: major activities and timeframes degree of alignment to future business state and business requirements strengths/weaknesses risk profile doability - org capacity/capability assessment on ability to meet Service and other potential IR and cross govt initiatives comparison to good practice and other tax administrations value for money considerations impact on current technology infrastructure/contracts/people/processes impact on business - people/processes/policy/technology overall assessment of alignment to principles Draft 1 ready for recommended option workshops 22 July Inform Future Decisions Draft In Confidence

9 Recommended option(s)* Recommended roadmap option(s) detailed* roadmap(s)* roadmap delivery approach* September report back to Ministers on Business and Systems * overall assessment of merit of option A subset of the technology transformation roadmap option(s) of greatest merit (as assessed by the metrics defined in deliverable 3 above and scored during deliverable 4). Each of the recommend transformation roadmap option(s) above will be further defined and include: more detail on activities and timeframes a comparison to the do nothing option idea of financial cost one off to implement and ongoing to run (including impact on BAU costs) off ramps (along with indication of costs/benefits to stop at off ramps) more detail on impacts/doability A visual that shows how the recommended option(s) would be sequenced, durations and years of implementation A set of principles/guidelines for use by IR management during the implementation of the recommended technology transformation roadmap option(s) A summary of the deliverables above to be issued to the Minister of Revenue and the Minster of Finance as committed to in April 2011 (IRD 2011/037). This will include: business vision/blueprints technology vision recommended transformation roadmap option(s) alignment of options to successful deployments in similar organisations globally transformation roadmap(s) transformation delivery approach organisation capabilities and capacities potential funding strategies supported with cost benefit models Draft 1 ready for Roadmap and Cost benefit model work 29 July 2011 Draft 2 ready for BTPB 4 August 2011 Draft 1 ready for funding strategy work 12 August 2011 Draft 1 ready for funding strategy work 12 August 2011 Draft 2 ready for BTPB endorsement 17 August 2011 Draft 1 ready for BTPB endorsement 17 August 2011 Draft 1: ready for internal review 26 August 2011 Draft 3: ready for SSC, Treasury and Ministers offices 30 August 2011 Final: ready for Ministers 1 September 2011 "A clearer view of our end-to-end processes and the demands placed on them" Deliverable Deliverable description Delivery date Blueprint An outline of the model to be used for current Draft 1 ready for use in current and outline and future state that will contain an indication of the business processes, business drivers, futures state blueprint work 17 June 2011 metrics by service and function, current projects Draft 2 ready for BTPB endorsement on 13 July 2011 Business A set of business drivers and targets Draft 1 ready for use in current and Drivers A set of target metrics for change future state blueprint work options workshops 17 June 2011 Draft 2 ready for BTPB endorsement on 13 July 2011 Current State A current state process map Draft 1 ready for use in future state Blueprint Agreed metrics for drivers blueprint work 8 July 2011 Draft 2 ready for BTPB endorsement on 13 July 2011 Future State A future state process map Draft 1 ready for use in options Blueprint Current projects mapped against future state workshops 18 July 2011 blueprint Draft 2 ready for BTPB endorsement on 4 August 2011 Project schedules A project plan has been developed in MS Project and will be baselined with the approval of this initiation report. The critical path has been identified and the project's progress will be monitored against the activities on the critical path. 9 Inform Future Decisions Draft In Confidence

10 Risk and Issue Management A separate Risk and Issue Management Plan is maintained containing a fuller set of risks and issues (no issues currently). This will be a standard agenda item at the BTPB at each monthly meeting from July onwards. Risk Risk # description Aggressive timelines may mean insufficient 1 consultation and communication within IR Resource unavailability Inability to gain consensus at workshops and/or Executive Board meetings in timely manner resulting in delays to delivery dates Inability to quantify the costs and benefits for one off and ongoing current and future business and technology may weaken the options and funding feasibility work required for the Ministers papers. Current third tier realignment work may impact management focus on this project Like- Conse- Risk lihood quence Rating Mitigation Almost Major Extreme Sponsors will need to keep EB/BTPB and certain 3rd tier management informed during project enabling core team to get on with delivering project Sponsors to work with team on agreeing stakeholder plans and agree relative priority of each stakeholder group Almost Major Extreme Sponsors and/or BTPB will need to certain communicate relative priority of this work to teams Timeframe expectations communicated to resources (and their managers in advance) Workshops to be set up in advance Structured approach to workshops so that time at workshops is optimally used and there is minimal out of workshop time commitments required of workshop attendees Possible Severe Extreme Sponsors and/or BTPB may have to provide direction when workshop teams cannot agree Relative importance or risk assessments will need to be overlaid on the work that cannot be agreed as it may be sufficient to park some elements of the work until after September Likely Major Extreme Work with F&P and budget baseline holders to make assumptions about how current costs. Use reference sites and external expertise to assist in identifying future costs and benefits Possible Major High Keep 3rd tier management informed throughout process Escalate any issues re gaining 3rd tier support to BTPB as required 10 Inform Future Decisions Draft In Confidence

11 Stakeholder Assessment Below is a high level table of the stakeholders. This work will be further detailed in a Stakeholder Management Plan as a separate deliverable. External Stakeholder Minister of Revenue Minister of Finance ICT Ministers SSC, Treasury, Ministers and Ministers offices Internal Stakeholder Commissioner of Inland Revenue EB BTBP Carolyn Tremain Peter Merci Tim Occleshaw Service Delivery Management Team ID&S Management Team 3rd Tier Management Team Identified managers within Service Delivery, ID&S, Business, PAD and Corporate Services. Inland Revenue Consultation approach Updates at weekly meetings Updates at fortnightly meetings Meet monthly Meet monthly Consultation approach Via BTPB meetings and other meetings as required As directed by BTPB when the implications of decisions being required are outside of BTPB's remit Monthly meetings for progress updates and deliverable endorsement Fortnightly meetings Weekly meetings Other meetings as required Weekly meeting via ID&S Leadership team Other meetings as required Weekly meetings with key representatives Review of key deliverables prior to presentation at BTPB for endorsement Weekly updates Review of key deliverables prior to presentation at BTPB for endorsement Updates as required Weekly meetings with key representatives Updates via intranet Resources - core team Withheld under section 9(2)(a) of the Official Information Act Inform Future Decisions Draft In Confidence

12 Withheld under section 9(2)(a) of the Official Information Act 1982 Resources - subject matter experts Supporting the core team will be a series of subject matter experts who will be available to provide specialist Inland Revenue knowledge. They will be involved through workshops, 1:1 meetings and to review outputs. These groups have an advisory role and will be required to provide assurance regarding the quality of the outputs to EB/BTPB. For the Business Blueprint work the following groups are involved on a part time basis. Specific names are currently being identified and will be added when known. Expertise and Inland Revenue Business Unit Data/Information Specialists from: NARU Policy Forecast Modellers Strategic Compliance Risk Customer & Product Innovation F&P Business Experts and Advisors Call/Contact Centre Frontline/Field Processing Compliance Management Debt Management Audit Management Prosecutions/Litigations Service Delivery Management Team (Tier 3 managers from Service Delivery) Purpose To provide IR customer, product, channel and transaction volume data information To provide specialist IR knowledge about the IR current state operation, strategic opportunities and potential future state operation. Future champions of the Business Programme To provide Service Delivery review and feedback on Business Blueprint, options and business road map. To provide nominated business experts and advisors to the project For the Technology work the following groups are involved: Withheld under section 9(2)(a) of the Official Information Act Inform Future Decisions Draft In Confidence

13 ID&S Management Team (Tier 3 managers from ID&S) To provide feedback on all Technology output prior to distribution to BTPB for endorsement To provide nominated business experts and advisors to the project Management Structure The diagram below outlines the proposed management structure for the project. Below the diagram are a list of the responsibilities for each of the roles. Deputy Commissioner Programme Manager Programme Office Business Blueprint Technology transformation Management Roles and Responsibilities Name Role Specific Responsibility Peter Mersi Deputy Responsible for delivery of Ministers paper by September Commissioner Responsible for the integration of the Technology and Blueprint workstreams to produce the overall transformational plan. Responsible for managing key internal and external stakeholders relationships (specifically SSC, Treasury, Ministers Offices and Ministers). Responsible for managing trade-off decisions arising from the project. Responsible for managing escalations to BTPB, EB or the Cornmissioner. Responsible for delivery of Business Blueprint workstream. Tim Occleshaw Deputy Responsible for delivery of the Technology Commissioner workstream. Responsible for assisting the delivery of Ministers paper by September Responsible for assisting the integration of the Technology workstream with the Business Blueprint workstream. 13 Inform Future Decisions Draft In Confidence

14 Withheld under section 9(2)(a) of the Official Information Act 1982 Programme Manager Technology Project Manager Project Manager Programme Office Responsible for all components of the IR Plan project on behalf of the Deputy Commissioner, Business. Specific tasks include all standard project management activities including management of: Management of the two workstreams and the intersecting activities between the two streams Project schedules Risk management Set up of independent assurance panel of suppliers and initial appointment of assurer for the September deliverable Reporting to BTPB and Executive Board Stakeholder management (specifically with SSC, Treasury, Ministers Offices, BTPB, Executive Board and 3rd tier management teams) Responsible for delivery of the Technology workstream. Responsible for assisting in the delivery of all project deliverables. Responsible for delivery of Business Blueprint workstream. Responsible for assisting in the delivery of all project deliverables. Responsible for supporting the Programme Manager in the delivery of the information, communications and support required to manage this project. Budget All internal resources working on this project will be provided to the project free of charge. The contractors used on this project will be paid for by Business. The costs for use of external contractors have been included in the 2010/11 and 2011/12 budgets. Recommendations The IR Plans project recommends that the sponsors: o Note the contents of this report; o Note that a more detailed Stakeholder Plan will be developed as a separate deliverable for sponsor approval; and Agree the IR Plan project can proceed as detailed in this. 14 Inform Future Decisions Draft In Confidence