What the Customer Wants from Information Services:

1. Competent IS personnel capable of resolving reported problems quickly and efficiently • Significant reduction in the bureaucracy and handoffs required to deliver IS services • Greater technological flexibility in the delivery of solutions (for example, desktop and client/server possibilities instead of only mainframe-based applications) • Clearer understanding of the costs allocated to the business units for IS expenses • Closer relationship with business units such that IS understands the customer's business and can anticipate its information technology needs • Compensation dependency such that IS performance evaluation and reward is tied to customer input and business unit success What the Customer Wants from Information Services:

2. Business Alliance Solution Delivery Customer Support CUSTOMER Technology & Architecture Strategy Infrastructure Operation Corporate IT Strategy Business Value Support

3. Corporate IT Strategy process enables the strategic interface between the business operating units and IS through which information technology processes are aligned with core business objectives. TheInformation Management Advisory Board (IMAB) is the governing body for implementing this alignment. • Technology and Architecture Strategy (TAS) process understands current and future business needs and corporate vision in order to research, assess, and recommend technology investments, standards, and guidelines. • Business Alliance (BA) process identifies technology opportunities and needs and coordinatesinformationservices based on core business goals. • Solution Delivery (SD) process owns, develops, acquires, and delivers information technology solutions needed to meet prioritized business requirements. • Customer Support (CS) process manages problem and request handling and provisions technical resources to ensure customer satisfaction with information systems and technologies supporting business operations. • Infrastructure Operation (IO) process is responsible for the continuous support and performance improvement of all computing and network (voice and data) resources. PROCESS DEFINITIONS

4. "If we always do what we always did, we will always get what we always got. So something's got to change.” • The most successful IS strategies will balance the flexibility of distributed computing and user-directed applications with central IS economies of scale, architectural consistency and concentrated deployment of resources. • Use an executive council to make sure that business-unit executives and IS staff are pulling on the same strategic oar. • Distributed, matrix-managed applications development organizations will become common during the next several years. The various parties involved in their deployment must agree on performance assessment mechanisms in advance. • Yesterday's IS organization was designed to optimize technology; the emerging IS organization will optimize product and service delivery to end users. • Carefully planned development of SLAs at an enterprise level is increasingly becoming an imperative for IT to manage service, costs, and customer satisfaction. • The difference today is that the IS department is no longer solely responsible for the IT investment decision.............Management has come to realize that IS cannot produce benefits, only users can produce benefits." BEST PRACTICES ...

5. FINANCIAL • Budget • Financial reviews • Chargeback ORGANIZATIONAL & ADMINISTRATIVE • Department/Group Meetings • Office Administration • Periodic Status Reporting • Operation Reviews CUSTOMER MANAGEMENT • Service Level Agreements • Prioritization of Customer Requests • Project Management VENDOR MANAGEMENT • Sourcing Methodology • Contract Negotiations • Legal Issues • Audit Interface IS MANAGEMENT PROCESS

6. RECOMMENDATIONS ... • Establish Quarterly Operation Reviews to key management staff on major projects, performance service level, new technology developments. • Establish Monthly Financial Reviews for each process to ensure good stewardship of financial resources. • Establish a Chargeback Team composed of both IS and customers to establish a chargeback/allocation mechanism which is accurate and understandable. • Financial Accountability will be pushed down to lower levels in the organization in order to increase individual stewardship and understanding of information technology costs. • Evaluate the secretarial processes to determine if a pooled/centralized or decentralized function is more appropriate. • Provide a generic project management tool for IS and customers which is easy to use, available during all business hours, and changeable based on business needs. IS MANAGEMENT PROCESS

7. RECOMMENDATIONS ... IS MANAGEMENT PROCESS - continued - • Establish Service Level Agreements with customers to achieve shared expectations against which success can be measured. • Establish a consistent prioritization and funding process coordinated by the Business Alliance Process Owner and involving Customers, Business Alliance Representatives, and Process Owners. • Involve the Legal Department at the front-end of all contract opportunities. • Information Systems will partner with Audit to maintain effective internal controls in the use of information technology in operating the business.

8. Guiding Principles (People, Process, Technology) for redesigned IS • Critical Success Factors (Levers) from client perspective • Projected financial implications • Redesigned Process descriptions and relationships • For each major process: • Concept Model with explanation • Task and Responsibilities list • Sub-process maps with explanation • Industry Best Practices • Organization model with staffing and financial projections • Overall Organizational recommendation • Critical positions that must be filled to enable transition • IS Human Resource enhancement recommendations • IS Management Process enhancement recommendations Deliverables from Redesign Phase

9. Has IS instilled confidence in its customers that it is ready, willing, and able to provide for the services its clients require to meet their business needs? • Does IS have a method in place for assessing skills, providing training, and compensating their staff in order to correctly hire, train and retain only skilled and competent employees? • Does IS have a succession practice in place such that the continuity of the customer's work is not interrupted when employees leave the company or take other positions within the corporation? • Is IS committed to competing or partnering with outside resources in order to provide the best solution at the best price? • Does the IS customer have enough costing information in advance to decide if the services they are requesting from IS add value before the costs are incurred? • Can IS customers accurately relate the IS expenses within their own groups to the IS charges? • Is the customers' IS invoice both understandable and historically accurate? CRITICAL SUCCESS FACTORS

10. I am accountable to the lines of business to whom I provide services. My customers will participate in evaluation of my performance. • I understand my customers really care about: - quality of service - high level of responsiveness - an understanding of the costs for this responsive service • I will spend time in my customer's work areas. • I will understand my customer's business. • I will establish and manage realistic customer expectations through close business relationships. • I will understand and honor all commitments I make. • I will act with a sense of urgency in responding to a customer's request. • I will assume personal ownership of a customer's request until the request is satisfied. GUIDING PRINCIPLES

11. GUIDING PRINCIPLES - continued - • I will make it easy for a customer to report a problem or make a request and stay informed of the status. • I will get my customers' approval for the timing of all service activities which may impact their business operations. • My work ethic will be customer focused and results-oriented. • I will understand what resources (hardware, software, or people) are necessary to fulfill my responsibilities. • I accept responsibility for maintaining and improving my competency. • I understand that the more I learn, the more skills I have, the more valuable I am to the organization. • I understand that the more I assist others through sharing my knowledge in individual relationships, formal, and informal teams, the more valuable I am to the organization.

12. EXEC End User Direct Value Added IMAB BA CS SD Indirect Value Added TAS IO Waste Relationship-Based Process Model The inherent value of the processes is realized by the way in which they interact with each other, while emphasizing the activities valued most by their customers. Customer • IS' Customers range from Executives to End Users. Executive users lead and guide the value-adding processes while all other users receive direct benefit from the processes through the specific application of information technology • Direct Value Added processes are those which, according to the customer, create something that the customer would be or is willing to pay for. • Indirect Value Added processes are essential to the proper functioning of the other processes although they are not perceived by the customer as providing immediate value to their business activities. • Waste processes and activities are those which provide no value at all to the customer or other processes and may even reduce value or hinder essential activities. All waste should be eliminated.

13. EXEC End User IMAB BA CS SD TAS IO Fragmented Customer Planning & Strategy Formalized Execution Direct Value Added Indirect Value Added Waste

14. EXEC End User Direct Value Added IMAB BA CS SD Indirect Value Added TAS IO Waste Customer

15. Line of Business Line of Business Information Management Advisory Board (IMAB) Line of Business Line of Business IS Leadership IS Ownership Business Alliance Solution Delivery Customer Support Technology & Architecture Strategy IS Management Process Infrastructure Operations Business Alliance Rep. Business Alliance Rep. Business Alliance Rep. Support Center Technical Support Network Software Operations Solution Delivery Team Solution Delivery Team Solution Delivery Team Solution Delivery Team Business Ownership

16. EXEC End User IMAB BA CS SD TAS IO Customer Direct Value Added Indirect Value Added Waste Corporate IT Strategy process enables the strategic interface between the business operating units and IS through which information technology processes are aligned with core business objectives. TheInformation Management Advisory Board (IMAB) is the governing body for implementing this alignment.

17. Information Management Advisory Board Responsibilities of IMAB • primary body to facilitate alignment between the business units and IS&T • decide investment levels in IS&T • distinguish strategic IS&T initiatives from tactical programs • represent/support/enforce decisions to the corporation • approve IS&S BPR redesign • oversee transition process • review and approve technology strategy recommended by TAS Membership • requires mix of operating and IS&T leaders • must be able to wear "enterprise" hat • personal interest in technology issues • who are the 6-10 key players in the company whose success depends on IS&T?

18. Advisory Board ... Business Alliance • Communicate high-level business objectives • Some BA people may actively participate on board • Ultimate priority-setting relationship Technology & Architecture Strategy • Formal technology strategy communication • Exchange ideas about business opportunities • Industry trends and best practices analysis KEY RELATIONSHIPS ... in the context of coordinating divergence between business units

19. EXEC End User IMAB BA CS SD TAS IO Customer Direct Value Added Indirect Value Added Waste Technology and Architecture Strategy (TAS) process understands current and future business needs and corporate vision in order to research, assess, and recommend technology investments, standards, and guidelines.

20. Technology Architecture Strategy FUTURE Business Business Systems Responsibilities of TAS • define, publish, and champion the corporate technology strategy • the technology providing processes (BA,SD,IO) are customers of TAS • understand the spectrum of Emerging, Proven, Proposed, and Present technologies • what IS and NOT for us • guidelines for appropriate utilization • maintain/promote access to "library" of technology reference material Membership • 5-10 full-time staff • 20-40 in virtual organization utilizing cross-functional teams • self-directed rather than task-oriented • individually creative, resourceful, results-oriented • IS generalists rather than technical specialists • must be able to get work done through others not under direct control Development Tools Database Layered Software Enableware Network Operating System Network Operating System Computer I S

21. Does IS have an understandable corporate IT strategy in place which is facilitated through • a dependable technology architecture and • application succession plan? • Does TAS have the credibility of both IS and the business units? • Does TAS provide competent advice on technical issues? • Does TASinform the appropriate group about technology that could be useful to the business? • Is TAS considered areliable repository of "best practices" by the IS organization and the user community? • Does IS publish and support a recommended products list in a timely manner that is flexible enough to meet the needs of its clients? TAS Critical Success Factors

22. TAS Specific Recommendations • Organize a Technical Architecture and Strategy Team • TAS will recommend technology standards and guidelines to be adopted by all processes.

23. Process Technical Layers of Technology Technology Architects Owner Writer Business Systems Development Tools Database Layered Software Enableware Network Operating Systems Network Operating System Computer Positions Needed for the Technology Architecture & Strategy Team Positions Needed for the Technology Architecture & Strategy Team

24. EXEC End User IMAB BA CS SD TAS IO Customer Direct Value Added Indirect Value Added Waste Business Alliance (BA) process identifies technology opportunities and needs and coordinatesinformationservices based on core business goals.

25. Business Alliance Best Practices • A new class of employee is needed to manage both the business and IT aspects of the processes. • Hybrid: a representative resides in the Line of Business, but reports to a new joint LOB/IT management. - META, Advanced Information Management

26. Responsibilities of BA • identify technology opportunities with business application • prioritize and fund all technology projects • develop/review Service Level Agreements • assist business unit with budget planning for technology projects • document the feasibility, cost, business requirements, and benefits of a project Business Alliance Skills, Knowledge, & Abilities • must understand the business objectives and goals • strong communication skills (oral/written) • knowledge of and ability to apply technology capabilities to business requirements • above average ability to lead others in their efforts to reach common goals and objectives.

27. Business relationship with BA • Partner with Business Alliance to determine IT investment strategy • Communicate business unit goals and objectives • Include Business Alliance Rep in business planning meetings • Empower Business Alliance Rep to determine priorities that meet the business needs • Provide project specifications, expectations, and requirements • Provision resources for project analysis, review, testing, training, etc....

28. Business Alliance Critical Success Factors • Does Business Alliance translate the business requirements into terminology IS can understand? • Does Business Alliance translate technical requirements into terms which business can understand and apply to today's environment? • Does Business Alliance adequately involve client? • Does Business Alliance have the authority/influence to get the job done? • Does Business Alliance work together to understand interface requirements? • Does Business Alliance recommend theright projects in the right order at the right time to meet business requirements? • Does Business Alliancehelp in resolving day to daysupport problems which have time critical implications? • Does Business Alliance understand and support the day to day work of the business to accomplish overall business goals and corporate objectives?

29. Business Alliance Recommendations • A total of 12 BA Representatives are estimated to be needed to fully serviceENSERCH. However, five BA Representatives should be assigned initially and that number increased after successful implementation of the initial group. • BA Representatives should beowned and managed by the business unit. If the business unit decides not to have a Representative a centralized Representative will be provided. • The Information Management Advisory Board (IMAB) will be responsible for initially establishingBA Representatives' business unit service area. • The BA Process Owner will have regular periodic meetings so that BA Representatives can discuss integrationissues, project status, and continuous process improvement (CPI). • Implement arequest tracking tool to allow BA Representatives to enter requests and track them until projects are complete. The request tracking tool will replace the manual method currently in place (Form 51, etc.).

30. Business Alliance Organization Distribution Business Alliance Transmission Finance & Admin. Exploration Other LOBs Process Owner BA BA BA BA BA BA Representatives Representatives Representatives Representatives Representatives Representatives Business IS Ownership Ownership

31. EXEC End User IMAB BA CS SD TAS IO Customer Direct Value Added Indirect Value Added Waste Solution Delivery (SD) process owns, develops, acquires, and delivers information technology solutions needed to meet prioritized business requirements.

32. Solution Delivery Best Practices • Distributed, matrix-managed applications development organizations will become common during the next several years. The various parties involved in their deployment must agree on performance assessment mechanisms in advance. • Applications Development teams can be deployed tactically and opportunistically, provided that they arebacked up by a technology-focused team at the center of IS, assisting with technological support and consultation. • The technology-focused "specialty center" should be placed at the center of the IS organization. The business-focused AD teams should have a double line of reporting: 1) to IS and 2) to the individual business units they serve at any point in time. - Gartner Group, Transition Strategies • Analysts, developers, and other IS personnel reside in business units, but they report to the CIO and central IS group. Some firmsonly move analysts into the business but keep applications development centralized. - Computer Select, Datamation

33. Information Management Advisory Board (IMAB) Line of Business Line of Business Line of Business IS Leadership IS Ownership Business Alliance Solution Delivery Business Alliance Rep. Business Alliance Rep. Business Alliance Rep. Solution Delivery Team Solution Delivery Team Business Ownership

34. Solution Delivery Critical Success Factors • Does Solution Delivery provide for quality business applications in a cost effective and time efficient manner? • Does Solution Delivery provide support for current applications by either, 1) supporting it internally, 2) supplying third party support, or 3) making plans to move from it , within the context of a technology architecture? • Does Solution Delivery have a method in place to assess current and future skills, and provide training to retain skilled employees? • Does Solution Delivery complete the project schedule on time and within cost projections? • Does Solution Delivery provide support within parameters of service level agreements? • Does Solution Delivery assist with all aspects buy and lease options chosen by the business?

35. Solution Delivery Recommendations • New development and maintenance of integrated business systems should be centralized. • New development and maintenance of single department business systems can be dispersed. • Solution Delivery and Business Alliance processes will interact to determine "single-department" or "integrated" classifications of solutions. • All solution delivery teams are accountable to both the business unit group and the Solution Delivery Process Owner. This is to ensure that technology standards, plans, and strategies are consistent. • Add team for quick response activities such as ad-hoc reporting, office automation development, and PC database development. • Implement project management tool that integrates the project management process.

36. Solution Delivery Recommendations - continued - • Move physical database tasks to the Infrastructure Operation process (capacity planning, performance monitoring, software upgrades, implementations, etc.) • Move logical database tasks to the Solution Delivery teams where appropriate (logical design, normalization, etc.) • All development will be done within this process independent of platform. • Implement an automated implementation tool. • Establish a list of projects for the Technology Architecture Strategy (TAS) team including: • Development tools that increases productivity of developers • Client Server tools and Object Oriented Programming • Prototyping Tools • Migration strategy from IDMS to a relational DBMS • Data Warehousing strategy • Application Succession Plan

37. EXEC End User IMAB BA CS SD TAS IO Customer Direct Value Added Indirect Value Added Waste Infrastructure Operation (IO) process is responsible for the continuous support and performance improvement of all computing and network (voice and data) resources.

38. INFRASTRUCTURE OPERATIONS CUSTOMER SUPPORT

39. Infrastructure Operations Best Practices • Most companies people/skills strategy is to cross-train existing IT personnel. - Gartner • Their is a growing trend to bring voice networking under IT. More companies recognize the strategic value of integrating voice processing with corporate data resources. - META

40. Infrastructure Operations Critical Success Factors • Does Infrastructure Operations provide cost-effective and reliable operation of all computer systems? • Does Infrastructure Operations manage and plan for appropriate capacity levels? • Does Infrastructure Operations evaluate, manage, and update server software and hardware in a timely and cost-effective manner? • Does Infrastructure Operations provide a reliable voice/data network for its customers?

41. Implement corporate-wide voice-mail solution. • Develop network monitoring skills in-house. Reevaluate BTAC agreement in one year. In the long term, performing these functions in-house should be more cost-effective. • Move responsibility for the Corporate Phone Directory to Human Resources. • Transition telephone invoice processing to Accounts Payable. • Automate CIS scheduling/monitoring. • Transfer Lotus Notes/Novell administration tasks to the Software Team for better synergy. • Move physical/maintenance activities of Database Administrators to the Software Team. Infrastructure Operations Recommendations

42. Infrastructure Operations Dispersed Areas (i.e. Distribution, Transmission, etc...) Network Software Operations Network Team Leader Software Team Leader Operations Team Leader Network Support Analysts Software Specialists Shift Leaders SW Bell/BTAC Support DBAs Media Administrator Storage Analysts Production Support Specialists Outsourcing

43. EXEC End User IMAB BA CS SD TAS IO Customer Direct Value Added Indirect Value Added Waste Customer Support (CS) process manages problem and request handling and provisions technical resources to ensure customer satisfaction with information systems and technologies supporting business operations.

44. Companies arere-engineering their help desk and technical support functions based around customer needs and service objectives. • More companies are implementing a centralized help desk. Benefits are centralized management, maximized resources, reduced labor cost and increased customer satisfaction. - META • Selective Outsourcing. - META, Gartner • Service Level Agreements at an enterprise level are becoming imperative for IT to manage service, cost and customer satisfaction. - META Customer Support Best Practices

45. Customer Support Critical Success Factors • Have we achieved 80% first call resolution? • Does Customer Support provideinput to its customers when it feels cost or operational efficiencies could be achieved? • Has Customer Support developed a staff of generalists who can perform a wide range of support activities? • Does Customer Support evaluate, manage, and update desktop application software in a timely and cost-effective manner? • Does Customer Support provide prompt, courteous service? • Does IS provide for equitable customer service to both the local and remote sites? • Does IS provide for timely acquisition of the necessary hardware and software at a competitive price? • Does IS assure that client calls are answered/acknowledged immediately when calling the Help Desk (never reaching an answering machine and not waiting on a call back)? • Does IS assure that client training is timely, well documented, well paced training that is accessible for both local and remote offices?

46. Customer Support Recommendations • Implement automated tools such as a Voice Response Unit (VRU) and Automatic Call Distribution (ACD) to route incoming calls to the appropriate/next available Analyst. • Staffing level should be based on Service Level Agreement requirements. • Investigate outsourcing desktop application calls. • Implement a call tracking system which can also be used for or integrated with a project request tracking system. • All Support Center Analysts will be co-located in a common area to allow for team interaction, quick response to all customer requests, emergencies and known resolutions. • Work with vendors to provide an electronic data interface (EDI) to their catalog of merchandise allowing direct purchasing communication links between the customer and vendor.

47. Customer Support Recommendations - continued - • Eliminate The Blue Flame BBS. • Outsource PC burn-in and configuration. • Leverage ENSERCH buying power through competitive bid, single vendor sourcing. • Move the administration of training to ENSERCH University. Have an IS person on the ENSERCH University board. IS will remain responsible for ensuring the technical content of courses. • Move information security and business continuity planning out of IS and into appropriate corporate department.

48. Process Owner Customer Support Support Center Technical Support Dispersed Areas (i.e. Distribution, Transmission, etc...) Support Center Leader Technical Team Leader Support Center Agents Technical Team Analysts

49. SkillsKnowledgeAbilitiesDetermination MarketCompensationAnalysis PerformanceEvaluationTool(s) JobCategories Human Resources Enhancement Cycle EvaluateStaff Gaps CompensationPlan GapTraining Assessment&Placement CompensationTransition