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Information Technology Services Branch: Government On-Line Initiative

Information Technology Services Branch: Government On-Line Initiative. Benefits Realization: Government of Canada Experience A presentation to the Organization for Economic Co-operation and Development E-Government Expert Meeting: Cost and Benefit Analysis Paris, France 6 February, 2006

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Information Technology Services Branch: Government On-Line Initiative

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  1. Information TechnologyServices Branch: Government On-Line Initiative Benefits Realization: Government of Canada Experience A presentation to the Organization for Economic Co-operation and Development E-Government Expert Meeting: Cost and Benefit Analysis Paris, France 6 February, 2006 Christine Desloges, Director General, Government On-Line, Government of Canada Bob Mornan, Executive Director, Chief Information Officer Branch, Government of Canada

  2. Purpose of presentation • To share current challenges faced by the Government of Canada (GC) in realizing benefits from IT/IM and e-government projects • To present an overview of the GC’s benefits realization methodology and experiences to date • To position the discussion for the afternoon session

  3. Overview of presentation • The problem that the GC is trying to solve • Benefits realization principles • Benefits realization methodologies – Brief Definitions • Enhanced Management Framework • Outcome Management • Overview of Enhanced Management Framework • Overview of Outcome Management methodology • Project Management and Outcome Management: Key differences • Outcome Management: The Canadian experience • Outcome Management: The potential to address challenges for the GC • Conclusion • Next steps

  4. The problem that the GC is trying to solve The GC has committed large sums of money to IT projects based on the promise of a return on that investment; the investment tends to be well managed, but managing the return needs improvement. “Business cases contain untested assumptions masquerading as facts”. The GC requires a benefits realization methodology beyond just providing deliverables to one that: • Ensures strategic alignment of outcomes with the business • Has broad applicability: • Beyond IT/IM projects • Horizontal initiatives • Prioritizes projects and portfolios • Establishes clear accountability • Includesongoing and ex post evaluations • Soft, non-financial benefits

  5. Benefits realization principles • Benefits realization is the pre-planning for, and ongoing management of benefits promised to be enabled by the successful implementation of an IT/IM or e-government project. • Sound project management can only enable a business owner (program) to realize intended benefits • Accountability for the realization of intended benefits must rest with the business function, not with the IT project

  6. Enhanced Management Framework and Outcome Management: Definitions Enhanced Management Framework (EMF) • EMF is an integrated management model that includes processes and key practices designed to ensure that government information technology projects fully meet the needs of the business functions they are intended to support, deliver all expected benefits and are completed on time, on budget and on scope. Outcome Management • Outcome Management is a set of methods, processes, tools and techniques for planning, selecting, managing and realizing results and benefits. What are we building? What is the schedule? What does it cost? What problem are we trying to solve? “Start with the end in mind.”

  7. Enhanced Management Framework (EMF) In 1996 the Treasury Board Secretariat developed the EMF* which, • Is required as part of the submission process (solicitation of funds) for IT/IM projects • Focuses on Project Management concepts (IT/IM driven) EMF includes: • Cost-benefit analyses (on budget, on time, and on scope) • “Gating” progress reporting * For further information on EMF refer to Management of Large Public IT Projects (Treasury Board of Canada, Secretariat, 2000) presented to the OECD in October 26-27, 2000

  8. Outcome Management What is an outcome? • An outcome (benefit) is the desired result of an initiative undertaken to meet a need or solve a problem (e.g. to reduce gun related crime by 25% within 5 years by implementing a national gun registry system) • Outcomes are final results supported by intermediate outcomes (benefits milestones) Background • Outcome Management is focused on the outcomes or results side of an initiative or program • Outcome Management methodology is a Canadian approach based on internationally recognized project and risk management techniques that has been refined through public and private sector collaborations • Outcome Management is an evolving discipline Details • Cost benefit analysis is a subset of Outcome Management • Outcome Management is the potential link to existing tools or other sources of performance indicators

  9. The Outcome Management process Outcome Management Process Stage 0 : Launch Outcome Management Ensure Readiness Stage 1 : Develop Outcome Create Assess Risk Realization Model Logic Model Create Create Create Initiative Register Outcome Register Risk Register Stage 2 : Develop Outcome Create Realization Plan Value Case Create Outcome Realization Plan Stage 3 : Monitor Delivery Implement of Outcomes Outcome & Risk Monitoring Stage 4 : Realize and Create Optimize Outcomes Outcome Management Office Harvest Benefits

  10. Outcome Management versus Project Management - EMF: Key differences

  11. Outcome Management: The Canadian experience In 2005-06, an examination of 12 GC projects using Outcome Management approach and traditional cost-benefit analysis practices: • 8 projects used Outcome Management methodology • 4 projects used cost-benefit analysis practices 10 Lessons Learned: • Align outcomes with departmental and government priorities • Outcome Management can articulate both the business and IT outcomes • Engage all stakeholders in the process • Outcome management provides flexibility in defining intangible or “soft” benefits • Conduct Outcome Management early in the lifecycle • Integrate Outcome Management with existing methods, frameworks and tools • Successful Outcome Management requires champions, education and communication • Outcome Management needs to overcome systemic challenges in government context • Cost-benefit analysis useful to document cost and areas for cost avoidances and conducting options analysis • Outcome Management provides clear definition of soft benefits

  12. Outcome Management: The potential to address challenges for the GC

  13. Conclusion • The Government of Canada has faced challenges achieving the benefits of IT/IM and e-government projects through the traditional project management and cost-benefit approaches • Outcome Management has the potential to overcome many of the current challenges Outcome Management • Focuses on realizing benefits not just providing the deliverables • Supports project, portfolio, program and initiative levels • Supports an enterprise approach • Adjusts and/or prioritizes along the way • Details and assigns accountabilities • Facilitates on-going and ex post evaluation of “hard” and “soft” benefits

  14. Next steps Outcome Management • The Government of Canada will: • Continue to research and pilot the Outcome Management methodology • Explore how Outcome Management can be integrated into existing tools • Research how to better cultivate a public sector culture that supports and practices benefits realization evaluations

  15. Christine DeslogesBob Mornan Director General, Government On-Line Executive Director Department of Public Works and Government Services Treasury Board Secretariat, Canada Government of Canada Government of Canada 5th Floor, 2745 Iris Street 5th Floor, 2745 Iris Street Ottawa, Ontario Ottawa, Ontario Canada K1A 0S5 Canada K1A 0S5 Tel: (613) 941-4611 Tel: (613) 946-9887 Fax: (613) 957-8700 Fax: (613) 952-7232 Christine.Desloges@pwgsc.gc.caMornan.Bob@tbs-sct.gc.ca

  16. Non-Financial: Increased service levels Decreased time to complete process / transaction Increased compliance with regulations Increased privacy protection Increased customer satisfaction Reduced client wait time Created environmental benefits Increased quality of life / social benefits Examples of Outcomes Financial: • Decreased cost of operations • Decreased energy consumption (costs) • Increased economic development • Maintained program registrations • Decreased bad debt • Decreased loss risk

  17. The Outcome Management process in detail

  18. I C E A Proceed F B J G D Hold H Stop Value Management Maturity 10 High StrategicAlignment Financial Worth /Performance Measures Low 0 0 10 Risk High Low

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