Realising the benefits of e-Government – the CJS IT Programme experience

1. Realising the benefits of e-Government – the CJS IT Programme experience Presentation to the 2006 Symposium on Justice and Public Safety Information Sharing March 13-15 by Stephen Jenner, Portfolio Director, Criminal Justice IT

2. The CJS IT Programme

3. Context: Justifying the investment – appraisal & evaluation in the UK “The fundamental reason for beginning a programme is to realise the benefits through change.” Source: Managing Successful Programmes (MSP) from the Office for Government Commerce “It is only possible to be sure that change has worked if we can measure the delivery of the benefits it is supposed to bring.” Source: UK Cabinet Office, Successful IT: Modernising Government in Action

4. Context: Benefits Realisation starts with the Business Case Cranfield University research into the factors underlying the failure to realise forecast benefits found: “In the overwhelming majority of cases, these factors were manifest prior to business case authorisation.”

5. The challenges we faced… • HM Treasury specified: • a minimum rates of return • efficiency savings • Existing projects did not show a positive NPV • A variety of benefits management approaches were in use • Project teams disbanded before full benefits realisation

6. So – the requirement: Developing an Active approach to Benefits Realisation that was… • Consistent - applying to all projects and programmes funded from the CJS IT ring fence budget • Robust – minimise double counting • Comprehensive – capture all the forms of value added • Applied from outline business case to benefit realisation

7. Investment Principles Funding is dependent upon adherence to the CJS IT governance arrangements Projects funded must deliver benefits to more than one agency Complete what is started subject to performance Projects must provide positive rates of returnagreed with the recipients Options selected should provide VFM and be achievable quickly Consume your own smoke i.e. departments are expected to fund overspends Continued funding depends on performance including benefits realisation Critical issues need to be addressed before funding is confirmed Projects must meet industry best practice criteria for attractiveness & achievability

8. Investment Analysis - Attractiveness

9. Investment Analysis - Achievability

10. CJS IT Portfolio Analysis

11. Quarterly ‘Contributor’ Project Benefits Reporting

12. But – Optimism Bias is a reality “There is a demonstrated, systemic, tendency for project appraisers to be overly optimistic. This is a worldwide phenomenon that affects both the private and public sectors…appraisers tend to overstate benefits, and underestimate timings and costs” Source: HM Treasury ‘Green Book’

14. So…The Benefits Integrity Check… Sponsor Organisation Recipient Organisation Benefits Agency A Realisation Plan Programme A Programme B Agency B Programme C Realisation Plan Agency C Benefits Integrity Check Realisation Plan Benefits Eligibility Framework

15. Recipient Organisation Benefits Realisation Planning & Reporting Accountability Named benefit owner for each benefit Progress by Quarter Current RAG Status Responsibility Agency Benefits Realisation Lead

16. Cross-system benefits - the ‘Root Cause Model’ & Combined Effectiveness Benefits

17. Social Value – the context • HM Treasury Green Book encourages the quantification of wider economic and social benefits • Project level claims were not robust • Independent research • programme level • potential impact on the economic and social costs of crime.

18. CJSIT Social Value – progress to date • By Home Office economists in late 2005 • Based on Root Cause Model derived impacts • Applied existing economic research to determine potential value in reducing the economic and social cost of crime • A range of forecasts have been developed • Benefits analysed using a quality scale • Interim findings: 10 year, mid point value – in the order of £300m

19. CJSIT Social Value – Different categories of confidence Consequence

20. Conclusions - the results to date • Spending Review baseline rolled forward for another 2 years • The Programme can now demonstrate a (robust) positive return on investment • We’ve laid the basis for evidenced benefits realisation

21. Conclusions – the Next Steps • Root Cause Model re-fresh • Process modelling & computer simulation – cross system focus • Social value phase 2 – inc. other dimensions of public value • Benefits Realisation Maturity Model • Complete Alignment with departmental efficiency plans and strategic target/PSA planning

22. Conclusions – Key principles • Benefits begin with the Business Case • Link funding to benefits forecasts • Validate project benefits forecasts with the recipients • Plan and manage benefits realisation from a business rather than a project perspective • Capture all forms of value – inc. cross system and wider Social Value benefits • Link continued funding to benefits realisation • Utilise Summary documentation (the Pareto principle)

23. Thank you Stephen.Jenner@cjit.gsi.gov.uk www.cjit.gov.uk