Deloitte Consulting LLP

Commonwealth of Massachusetts Statewide Strategic IT Consolidation (ITC) Initiative

Bi-weekly Statewide Working Group Discussion Document

November 16, 2009

DRAFT – FOR DISCUSSION PURPOSES ONLY

- 2 -- 2 -DRAFT FOR DISCUSSION PURPOSES ONLY

Agenda

1 Integrated Phase III Workplan Review

2 Evaluation of the Communications Effectiveness Survey Results

3 Update on 3rd Party Vendor

4 ITC Macro Financial Picture

IT Consolidation Initiative – Phase 3 Workplan (10/20/2009)

IT Consolidation Program Area

Primary Point of Contact

210/5-9

310/12-16

410/19-23

510/26-30

611/2-6

711/9-13

811/16-20

911/23-27

1011/30-12/4

1112/7-11

1212/14-18

1312/21-25

1412/28-1/2 Key Outputs

We Are Here

1. Consolidated Sec. Operating Model1.1 Phase-out delegated operations1.2 Wave 1 staff transitioned1.3 Enhanced procurement started

Deliverable or Milestone

2. Helpdesk Services2.1 EOLWD and ANF consolidated

Develop detailed workplan and operating model for “Centralized” IT

Develop staffing plans for ITD and Secretariats

3. Data Center Services3.1 EOHED and 50% EOHHS data center pilot consolidated3.2 Security architecture plan3.3 Virtualization architecture developed

4. Network Services4.1 50% of EOHHS VoIP implemented4.2 Network backbone started4.3 Network contingency savings initiated

5. Email & Directory Services5.1 DOT consolidation onto MassMail initiated

7. Service Excellence7.1 IT Service Mgmt impl (asset mgmt, change mgmt 50%, request fulfillment 50%)7.2 Chargeback improvement roadmap implementation in progress7.3 Common helpdesk tool requirements defined

Inventory of in-scope assets identified

Develop helpdesk processes. Finalize staffing model. Rollout common tool. Develop SLAs with agencies.

Finalize EOHHS cost analysis and business case

Complete security “trusted zones” strategy

Deploy VoIP at 30% of EOHHS sites and 30% of phone lines converted

Define backbone implementation plan

Select vendor. Identify areas of opportunity

DOT planning and approach

Execute chargeback improvement roadmap

· Phase out delegated operations

· Wave 1 resources transitioned

· Enhanced procurement with targeted vendor complete

· Consolidated EOHED servers· Refined Detailed

Infrastructure Plan · 50% EOHHS pilot infra

consolidated· DC2 Security strategy · Virtualization strategy

· VoIP active at 80 sites· Network backbone

deployed to Springfield· Network cost savings

realized

· MassDOT cost analysis· Implementation plan

· Asset management toolset rolled-out

· 50% change management and request fulfillment process implemented

· Chargeback roadmap implementation initiated

· Common toolset requirements

· Consolidated EOLWD and ANF helpdesks

Develop Centralized and Lead Agency Operating Models

Identify and transition staff associated with Wave 1 consolidation

Develop negotiation strategy Execute negotiation plan

Cutover helpdesks ops

Consolidate EOHED servers, begin EOHHS pilot consolidation

Develop security architecture

Develop security architecture implementation plan

Deploy backbone to Springfield data center

Review billing and legal documents Identify errors and negotiate savings with vendors

Begin consolidation

Implement asset management solution

Implement 50% Change Management and Request Fulfillment processes

Begin phasing out delegated operations

WORKING DRAFT UNDER DEVELOPMENT FOR DISCUSSION PURPOSES ONLY

Develop virtualization architecture

Define common toolset requirements

Commonwealth

Deloitte Legend:

1.1 SCIOs1.2 SCIOs1.3 Linda Hamel

2.1 John Glennon/Marcie Desmond

3.1 Jordan Harris (John Holbrook) 3.2 Jordan Harris (Dan Walsh)3.3 Jordan Harris (Jason Snyder)

4.1 Jordan Harris (Jason Snyder)4.2 Jordan Harris (Jason Snyder)4.3 Jordan Harris (Lou Angeloni)

5.1 Jordan Harris (Maureen Chew)

7.1 Tom Esposito7.2 Tom Esposito7.3 Jason Snyder

6. Web Portal and IA6.1 Web Portal and IA consolidation initiated

Develop detailed migration plan. Perform cost analysis. Begin consolidation of Department of Early Education and Care · Cost analysis· Implementation plan

6.1 Jordan Harris (Susan Parker)

Deploy VoIP at 40% of EOHHS sites and 35% of phone lines converted Deploy VoIP at 50% of EOHHS sites and 40% of phone lines converted

At Risk of Delay Past 12/31

Bold/Italics: denotes timeline has changed from original plan

IT Consolidation Initiative – Phase 3 Workplan (10/20/2009)

IT Consolidation Program Area

Primary Point of Contact

210/5-9

310/12-16

410/19-23

510/26-30

611/2-6

711/9-13

811/16-20

911/23-27

1011/30-12/4

1112/7-11

1212/14-18

1312/21-25

1412/28-1/2 Key Outputs

We Are Here

8. Program Management8.1 Develop and manage integrated program workplan8.2 Provide program management support to ITD and Secretariats8.3 Conduct knowledge transfer to ITD Program Manager8.4 Support TGB chair to develop approach and templates used in existing governing bodies

10 IT Governance10.1 8 consolidation case studies developed10.2 Benefits tracking pilot completed

11 IT Finance11.1 Cost allocation and indirect rates developed11.2 Guidance related to federal funds/trusts/grants/retained revenue developed

12. HR/Labor/Talent12.1 Staff transition repeatable process developed12.2 IT workforce trained on ITIL

13. Communications13.1 Report on consolidation presented to Governor and business stakeholders13.2 Changes related to staff transition communicated

Conduct knowledge transfer to ITD Program Manager

Identify 8 IT services for case studies

Perform benefits tracking pilot

Develop cost allocation models and indirect rates with Secretariat CFOs

· One integrated program workplan in MS Visio

· One project plan in MS Project

· Bi-weekly IT Consolidation working group meetings

· Weekly program management co-chairs meeting

· Knowledge transfer and review of PMO documents with ITD Program Manager

· Framework and checklist that can be leveraged from other Commonwealth governing bodies

· 8 case studies highlighting consolidation benefits

· KPIs/dashboard developed for EOHED and EOHHS

· Cost allocation models and indirect rates to address federal funds, grants, trusts, and other funding sources

· Final report delivered to Governor, including results of benefits tracking pilot

· Email Blasts, NewsByte, CCIO videocast

· Staff transition process · Refined view of IT staff by

job function and family· ITIL training process for IT

workforce

Develop integrated project workplan

Provide program management support to ITD and Secretariats

Develop case studies

Rollout benefits tracking to other Secretariats

Provide guidance on federal funds, grants, trusts, etc

Develop macro strategy and staff transition repeatable process Develop Wave 1 transition plan Train HR directors

Develop ITIL training roll-out process, identify trainers Train ITIL trainers

Storyboard final report for Governor Create, refine, and deliver final report

Ongoing project communications focused on HR/Labor/Talent and staff transitions (through Email Blasts, Newsbyte, CCIO videocast, etc.)

Engage 3rd party vendor with Comptroller’s Office

WORKING DRAFT UNDER DEVELOPMENT FOR DISCUSSION PURPOSES ONLY

Provide support and frameworks to TGB chair

8.1 Deloitte8.2 Deloitte8.3 Deloitte8.4 Deloitte

10.1 Deloitte10.2 Deloitte

11.1 Deloitte11.2 Deloitte

12.1 Deloitte12.2 Deloitte

13.1 Deloitte13.2 Deloitte

9. Secretariat IT Consolidation9.1 Provide integration and coordination support to Secretariats9.2 Develop Service Level Agreement templates that can be customized by Secretariats to provide IT services to agencies9.3 Use Common Plan Checklist to monitor progress of Secretariat IT Services consolidation based on plans

9.1 Deloitte9.2 Deloitte9.3 Deloitte

· Sharing of best practices and industry trends

· Meetings with Secretariat project teams to review progress and provide guidance

· Service Level Agreement template

· Guidance and checklist for developing a Service Level Agreement for each of the four Secretariat IT services

Provide integration and coordination support to Secretariats

Develop SLA templates

Monitor and report on progress

Deliverable or MilestoneCommonwealth

Deloitte Legend:At Risk of Delay Past 12/31

Bold/Italics: denotes timeline has changed from original plan

Evaluation of Communications Effectiveness Survey Results

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Level of Information about Consolidation

The majority of respondents are informed about consolidation to some degree.

For those not feeling informed, comments focused on messages being vague or for project parts that didn’t apply to them directly.

Feelings about transparency of the project are more divided.

Recommendations:

1. Conduct additional town halls and other in person meetings.

2. Provide enhanced information to management so that they may enhance their direct communicate with staff.

The majority of respondents receive regular project communications. Now that distribution lists have been created for nearly all secretariats, it is anticipated this number will trend up in the future.

Do you feel informed about consolidation?

Do you think Consolidation is happening Transparently?

How frequently do you receive information?

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How do you receive information?

Project communications are reaching the community in a favorable method, email.

It appears as though this is not the case with the second most preferred method, in person communications.

Lack of in person communications may be resulting in a dependence on the “rumor mill”.

Recommendations:

1. Provide more opportunities for constituents to hear information directly.

2. Increase information to CHROs and CFOs so that they can communicate with staff about the program as well.

How do you prefer to receive communications?

How do you find out information about Consolidation?

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Overall Effectiveness of Communications

The response to consolidation communications are primarily neutral to positive.

Results mirror responses for:

– How informed people felt about Consolidation

– How transparently consolidation is being communicated

Respondents comments focused on:

– Communications have shown marked improvement

– The need for more specific information

– The need for more information about the day to day impacts of consolidation

Respondents understand the big picture of consolidation but would like more information about how it impacts their lives and work directly.

Recommendations:

1. Conduct more in person meetings with built in question and answer sessions.

2. Provide additional clarity and specificity in communications.

3. Identify additional ways for staff to directly participate in consolidation.

In general, how effective have communications been about IT Consolidation?

In general, how effective have communications been about IT Consolidation?

Do you have suggestions for improving communications?Do you have suggestions for improving communications?Opportunities for Improvement

How Effective?

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Use of Communications Tools

Direct communications (those an individual receives) have been more successful than indirect communications tools (those an individual seeks out).

Some tools where under development in parallel with the creation of distribution lists; awareness and understanding of different modes may be mixed as a result.

Especially within secretariats use of intranets, wiki, and mass.gov has never been clearly defined. Use of these tools is inconsistent within secretariats and not well understood by staff within secretariats.

Recommendations:

1. Provide additional information about existing modes of communication.

2. Better define approach to existing tools within each secretariat.

3. Secretariat level determination could be made regarding go forward approach to communicating with staff, when not in person.

Effectiveness of ToolsWhich of the following tools have you used?

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Effectiveness of Specific Tools: Email Blast and Wiki

Those who receive the blast feel that it is a useful project tool and a dependable source of project information.

Recommendations:

1. Continue to release the Blast with more specific information targeted at the impacts on individuals

2. The frequency of release could be reduced so long as the content remained relevant and meaty and the more detailed newsletter continued to exist.

Those who use the wiki use it for basic program information, secretariat activities and meeting materials. Those who don’t use the wiki find it is: too complicated, contains material that doesn’t apply to them specifically or are not interested in using it.

Recommendations:

1. Move content that is maintained more regularly (e.g. working group materials or Communications Hub) up front to keep the appearance fresh.

2. Clarify the use of wiki as compared to other tools ( vs. intranet, mass.gov).

3. Streamline the number of pages (especially for secretariats that don’t use the wiki as much)

Do you receive the Email Blast?Do you receive the Email Blast?

Do you use the Consolidation Wiki?Do you use the Consolidation Wiki?

Effectiveness of Email Blasts

Effectiveness of Wiki

Axis titleAxis title

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Effectiveness of Communications Tools: Other Tools

For these other tools, the majority of respondents were unaware of these modes entirely. The use of these tools may be due to the fact they were developed concurrently with distribution lists.

Recommendations:

1. Reissue information regarding the use of these tools, and how to access them.

2. Reissue the link to the consolidation video to increase common understanding of consolidation.

3. Provide additional guidance to middle managers about the use of the Hub, especially for in person communications needs.

Did you know there was a Video?

Recommendations

Which feedback tools are you aware of?

Did you know there is a Communications Hub?

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Conclusions and Next Steps

Tools

Direct communications tools are working and should be continued

Indirect tools need streamlining and additional clarification around their use.

Continue use of successful communications focusing on improving clarity, specificity and applicability to individuals

Issue additional guidance about the availability of tools, available channels

Conclusions

Next Steps

Process

The approach to communications going forward should not be solely driven by electronic tools and instead more focused on direct, in-person communication.

Additional work should be driven to enhance use of tools and process by leaders at the agency and middle management level.

Facilitate decisions within each secretariat clarifying the approach to communications within each secretariat.

Make changes to ITC approach in response to secretariat decisions.

Update on 3rd Party Vendor

Summary Overview of the 3rd Party SOW

Contract Vehicle Statewide Contract for Ancillary Audit Services (RFR# PRF08DESIGNATEDOSC)

Key Dates

• Jul 10-Aug 3, 2009: CTR reopened contract to add cost allocation, cost accounting, statewide fringe & payroll tax rate work, inclusive of updates and reviews of any new entities

• Nov 6, 2009: OSC issued SOW to vendors• Nov 20, 2009: SOW responses due by 12pm EST• Dec 7, 2009: Proposed start date• Dec 31, 2009: Part I Deliverable due (see below for more detail)• Mar 31, 2010: Part II Deliverables due (see below for more detail)

Primary Contacts Kathy Sheppard, CTR; Eric Berman, CTR; and Kevin Moran, CTR (to serve as Project Manager)

Part I: Prepare Commonwealth’s SWCAP

Scope of Work and Deliverables

Part II: Review Indirect Costs

• Update the Commonwealth’s SWCAP process

• Incorporate new information into SWCAP, itself, including the following adjustments to the FY10 SWCAP: ‒ Departmental Changes‒ IT Consolidation IT Administrative Operating Model Changes‒ Creation of MassDOT‒ Actual FY09 Results‒ ‘Roll-Forwards’‒ Section II Costs

• Inclusive of PACAPs and DCAPs

• Update the Commonwealth’s SWCAP process

• Incorporate new information into SWCAP, itself, including the following adjustments to the FY10 SWCAP: ‒ Departmental Changes‒ IT Consolidation IT Administrative Operating Model Changes‒ Creation of MassDOT‒ Actual FY09 Results‒ ‘Roll-Forwards’‒ Section II Costs

• Inclusive of PACAPs and DCAPs

• Recommend cost allocation methodology for IT services consolidated at the Secretariat level and providing services to departments

• 71 indirect rates total to be reviewed, including: ‒ 5 DCAPs; 3 transportation reform-related rates; 8 rates in

various stages of Federal negotiation; and all remaining rates already approved for FY10

• Additional services may include: ‒ Preparation, negotiation, and publication of the Statewide

Fringe Benefit and Payroll Tax Rates‒ Submission of approximately 50+ departmental indirect cost

rates to the appropriate Federal entity

• Recommend cost allocation methodology for IT services consolidated at the Secretariat level and providing services to departments

• 71 indirect rates total to be reviewed, including: ‒ 5 DCAPs; 3 transportation reform-related rates; 8 rates in

various stages of Federal negotiation; and all remaining rates already approved for FY10

• Additional services may include: ‒ Preparation, negotiation, and publication of the Statewide

Fringe Benefit and Payroll Tax Rates‒ Submission of approximately 50+ departmental indirect cost

rates to the appropriate Federal entity

Part I Deliverable : •Updated SWCAP, including data development and standard allocation plan

Part II Deliverables: •Indirect Cost Review with Guidance to Expedite Preparation•Approximately 6 FY11 Departmental Indirect Cost Plans

ITC Macro Level Financial Picture

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