Lessons Learned Regarding the Transformation of Pay Administration Initiative (TPA)

Transcription

1 Lessons Learned Regarding the Transformation of Pay Administration Initiative (TPA) National Capital Project Management Symposium October 24, 2018 Sandy Moir, Partner, Goss Gilroy Inc. 1

2 Purpose of the Study Identify lessons from the management and implementation of the TPA To apply to current and future transformation initiatives, including TPA in the future Looking at scope from 2008 to April 2016 Included both pay modernization and pay consolidation Independent assessment With a lessons learned lens relying on balance of qualitative information and document review High degree of engagement of stakeholders in an open and sharing environment; not seeking consensus Not bound by pre-determined lines of inquiry 2

3 Methodology 37 interviews with over 50 individuals, including those from Treasury Board of Canada Secretariat (TBS) and Public Services and Procurement Canada (PSPC) (including Pay Centre), Shared Services Canada (SSC), unions, departments and agencies, third party organizations 8 workshops with over 100 individuals: TBS, PSPC, Chief Audit Executives, Compensation Advisors at Pay Centre and in National Capital Region, Chief Financial Officers, Heads of Human Resources, line managers, employees Other than TBS and PSPC, participants spanned 37 different large and small departments/agencies Sought a mix of different models in terms of how departments/agencies interact with the pay system 3

4 Validation Approach Validation during data collection from documents and probing/ validation with subsequent interview respondents During analysis, sought areas of agreement and disagreement and followed up with additional validation via document review and applied our own judgment based on study team expertise Additional validation via joint and separate meetings with TBS and PSPC Departmental Audit Committees, as well as five targeted in-person meetings 4

5 Overview of Lessons Identified NOT FOR CIRCULATION NE PAS DISTRIBUER 5

6 Major Areas of Lessons Learned NOT FOR CIRCULATION NE PAS DISTRIBUER 6

7 Scoping: Properly define what is changing Initiative Definition Major Areas of Lessons Learned Governance & Oversight Roadmap: Articulate discrete projects and how they interrelate Accountability: Assign accountability and authority to a single office Governance: Establish broad and inclusive governance Oversight: Ensure oversight provides sufficient challenge Initiative & Project Management Testing: Fully test the IT Solution before launch Engagement of private sector: Leverage and engage the private sector to maximize initiative capacity and capabilities Mid-initiative adjustments: Reassess, learn and adjust Change Management Culture: Assess and then Culture/Leadership Environment adapt or manage the culture and leadership environment Change Mgt: Treat change management as a priority Comms: Focus on communications that are effective Capacity Management Identify and establish required capacity prior to golive NOT FOR CIRCULATION NE PAS DISTRIBUER Lessons from the Transformation of Pay Administration Initiative Business Case & Outcomes Management IT: Engage and communicate with stakeholders regarding anticipated IT Solution functionality IT: Do not conduct extensive or risky customizations if they can be avoided Outcomes management: Implement outcomes management throughout the life of the initiative Outcomes management: Do not expect savings until well after implementation Support: Support affected stakeholders if they are to play a role in the initiative 7

8 Conclusions of the Study These were lessons yet to be learned by the Government of Canada. While we identified 17 lessons, it was our view that fundamentally it was the underestimation of the initiative s scope and complexity that led to its downfall. Had the initiative been managed recognizing the wide-ranging scope and complexity of the transformation not limited to a system or the movement of personnel then the necessary pieces could have been properly established and followed. We believe that, together, the public service and the private sector possess the correct set of capabilities and capacities to successfully manage and implement such initiatives in the future. Culture needs to be aligned with the magnitude and challenge of the transformation. 8

9 Takeaways I apply to my work Look at the big picture Even if your piece is small, be sure you know how it fits and whether it will work with the other moving parts Know who is in charge It may not be my client; what does the ultimate client want/need? Having a robust challenge function ensures quality AND engagement Don t be afraid to fail/get constructive feedback it will improve the quality of your work in the long run Never assume people are open to REAL change Change needs to be nurtured and kept on the front burner Know what you are getting yourself into Culture will directly impact you and the extent to which your work can make a difference in the organization Changing culture is usually outside your sphere of influence, so you must manage WITHIN the existing culture Most government clients don t know how to engage with the private sector what we know and what we don t know and how we can help them connect to experts I try to be more vocal and make suggestions when I think my client doesn t know where to turn WHAT ABOUT YOU??? 9

10 Full Report The full report can be found on TBS Web site: 10

11 Annex: List of Lessons Identified NOT FOR CIRCULATION NE PAS DISTRIBUER 11

12 Lesson 1: Scoping Define the scope of areas undergoing change and define the changes as discrete projects with associated interrelationships and interdependencies within the overall initiative Lesson 2: Roadmap Develop a roadmap to articulate the interrelationships and interdependencies between the discrete projects within the defined scope of the transformation initiative (as well as with other related projects) Lesson 3: Accountability Assign accountability and authority for a multidepartment/agency or government-wide transformation initiative to a single Minister and deputy head, with the accountabilities, authorities, roles and responsibilities of other implicated organizations being designed, documented and implemented as part of an overall accountability framework Lesson 4: Governance Establish governance that fully reflects the broad range of stakeholders affected by the entire initiative. For example, a committee with membership from the end-to-end process owner, the organization(s) leading projects, and different types of stakeholders (such as departments/agencies, representatives of affected functional communities and policy centres) should oversee the initiative Lesson 5: Oversight Establish a challenge function for effective independent oversight that encompasses the complete scope of the transformation, drawing upon organizations with international experience and individuals in that transformation area, and reporting directly to the Minister or deputy head accountable for the overall initiative Lesson 6: Culture/Leadership Envir. Assess the culture of the organization(s) in which the transformation is occurring. Ideally, organizational culture should be agile, open to change, engaging, responsive to stakeholder feedback and willing to receive unwelcome and unexpected information. Where culture is not ideal, take steps to manage the transformation within that culture (e.g., heightened challenge function, effective communications) Lesson 7: Change Management Planning and Execution Plan and implement change management as a priority throughout the life of any high risk, complex transformation initiative. Change management and change leadership cannot be considered optional, an add-on, nor expendable when looking for ways to save time or money. Lesson 8: Communications Communicate in a relevant, timely, comprehensive manner as a key priority of the change process, integrating into and across each and every project, phase and activity, with the effectiveness of communication being the measure of success Lesson 9: The IT Solution Communicate the anticipated functionality of any required new IT solution (including any limitations) to all stakeholders. Strategies for dealing with any limitations should be discussed and developed in collaboration with affected stakeholders and be ready for implementation at go-live Lesson 10: The IT Solution Align business processes and organizational models as much as possible to the underlying structure of any COTS IT solution being considered, rather than engaging in extensive and risky customizations Lesson 11: Outcomes Management Develop and fully implement explicit outcomes management throughout the life of the transformation initiative from inception to post go-live. Success must be assessed for progress on implementing the various projects that makeup the initiative, including the business transformation, change management and any new IT solution Lesson 12: Outcomes Management Realistically challenge the timing of when benefits (e.g., efficiencies, cost savings, service quality) will be actually achieved recognizing experience to date and the experiences of others, then adjusting as necessary over the life of the transformation initiative Lesson 15: Engagement of the Private Sector Involve government and the private sector fully and collaboratively in the critical initial stages of any transformation initiative, before adopting any one particular approach and with full consideration of the capabilities that each can bring to possible approaches Lesson 13: Support to Affected Stakeholders Fund and equip departments and agencies to successfully carry out the necessary activities to support horizontal transformation initiatives, including access to change management expertise, financial and human resources Lesson 16: Mid-Initiative Adjustments Update and revisit regularly the business case for the transformation initiative and the individual projects as the implementations evolve. In addition to assessing whether key assumptions were accurate pertaining to time and budget, consideration should include any changes in the initiative and projects scope, the progress and success in stakeholder engagement, the effectiveness and projected timing of any business or organizational transformation and the effectiveness of governance and leadership Lesson 14: Testing Launch any required new IT solution only after it has been fully tested with end-to-end real-life simulations using a broad spectrum of real users and when all doubts regarding success have been addressed and verified independently Lesson 17: Capacity Management Manage the required workforce transformation as an explicit function or project through the life of the initiative from inception to post go-live ensuring the necessary workforce capacity, expertise and corporate memory are available through to the end state. Establish a detailed contingency plan that can be readily implemented, if necessary

13 Area: Initiative Definition Scoping: Lesson 1: Define the scope of areas undergoing change and define the changes as discrete projects with associated interrelationships and interdependencies within the overall initiative. Target Operating Model*: Roadmap: Lesson 2: Develop a roadmap to articulate the interrelationships and interdependencies between the discrete projects within the defined scope of the transformation initiative (as well as with other related projects). *Adapted from KPMG model for finance function 13

14 Area: Governance and Oversight Accountability: Lesson 3: Assign accountability and authority for a multi-department/agency or government-wide transformation initiative to a single Minister and deputy head, with the accountabilities, authorities, roles and responsibilities of other implicated organizations being designed, documented and implemented as part of an overall accountability framework. Governance: Lesson 4: Establish governance that fully reflects the broad range of stakeholders affected by the entire initiative. For example, a committee with membership from the end-to-end process owner, the organization(s) leading projects, and different types of stakeholders (such as departments/agencies, representatives of affected functional communities and policy centres) should oversee the initiative. Oversight: Lesson 5: Establish a challenge function for effective independent oversight that encompasses the complete scope of the transformation, drawing upon organizations with international experience and individuals in that transformation area, and reporting directly to the Minister or deputy head accountable for the overall initiative. 14

15 Area: Change Management Culture/Leadership Environment: Lesson 6: Assess the culture of the organization(s) in which the transformation is occurring. Ideally, organizational culture should be agile, open to change, engaging, responsive to stakeholder feedback and willing to receive unwelcome and unexpected information. Where culture is not ideal, take steps to manage the transformation within that culture (e.g., heightened challenge function, effective communications). Change Management Planning and Execution: Lesson 7: Plan and implement change management as a priority throughout the life of any high risk, complex transformation initiative. Change management and change leadership cannot be considered optional, an add-on, nor expendable when looking for ways to save time or money. Communications: Lesson 8: Communicate in a relevant, timely, comprehensive manner as a key priority of the change process, integrating into and across each and every project, phase and activity, with the effectiveness of communication being the measure of success. 15

16 Area: Business Case and Outcomes The IT Solution Management Lesson 9: Communicate the anticipated functionality of any required new IT solution (including any limitations) to all stakeholders. Strategies for dealing with any limitations should be discussed and developed in collaboration with affected stakeholders and be ready for implementation at go-live. Lesson 10: Align business processes and organizational models as much as possible to the underlying structure of any COTS IT solution being considered, rather than engaging in extensive and risky customizations. 16

17 Area: Business Case and Outcomes Outcomes Management: Management Lesson 11: Develop and fully implement explicit outcomes management throughout the life of the transformation initiative from inception to post go-live. Success must be assessed for progress on implementing the various projects that makeup the initiative, including the business transformation, change management and any new IT solution. Lesson 12: Realistically challenge the timing of when benefits (e.g., efficiencies, cost savings, service quality) will be actually achieved recognizing experience to date and the experiences of others, then adjusting as necessary over the life of the transformation initiative. Support to Affected Stakeholders: Lesson 13: Fund and equip departments and agencies to successfully carry out the necessary activities to support horizontal transformation initiatives, including access to change management expertise, financial and human resources. 17

18 Area: Initiative and Project Management Testing: Lesson 14: Launch any required new IT solution only after it has been fully tested with endto-end real-life simulations using a broad spectrum of real users and when all doubts regarding success have been addressed and verified independently. Engagement of the Private Sector: Lesson 15: Involve government and the private sector fully and collaboratively in the critical initial stages of any transformation initiative, before adopting any one particular approach and with full consideration of the capabilities that each can bring to possible approaches. Mid-Initiative Adjustments: Lesson 16: Update and revisit regularly the business case for the transformation initiative and the individual projects as the implementations evolve. In addition to assessing whether key assumptions were accurate pertaining to time and budget, consideration should include any changes in the initiative and projects scope, the progress and success in stakeholder engagement, the effectiveness and projected timing of any business or organizational transformation and the effectiveness of governance and leadership. 18

19 Area: Capacity Management Lesson 17: Manage the required workforce transformation as an explicit function or project through the life of the initiative from inception to post go-live ensuring the necessary workforce capacity, expertise and corporate memory are available through to the end state. Establish a detailed contingency plan that can be readily implemented, if necessary. 19